If You Build It…
The headlines are full of hope and optimism, as well as dread and doom. October 1 is upon us and no one knows for sure what is going to happen. Both public (presumably) and private health exchanges are built, in place and ready for action. Will they come? Will enough people enroll to make it worthwhile, to spread the risk, to lower the costs?
There’s one thing we know for certain – the law has not been repealed and it goes into effect today, October 1st. Lack of awareness and understanding has been the biggest obstacle thus far. While most Americans have heard the word Obamacare or Affordable Care Act, they are hard pressed to say what it means to them. Many opinions on the law are based solely on political views, and not on the hard facts.
A recent Deloitte survey indicates that “four in five uninsured consumers indicate low to mixed interest in purchasing insurance through an exchange; only one in five says they would be likely to participate.” Why? Lack of information.
Some might ask how is this possible? This issue has been on the front pages since the law passed in 2010. Have consumers and the uninsured had their heads in the sand on this? Probably not. Incessant news stories about the law, about exchanges, about competition, don’t necessarily result in providing the answer to the question “how do I do this?” or in other words “what does this mean to me?”
For the law to remain viable, for exchanges to be competitive, and for consumers and the uninsured to benefit – they need to come. By the millions. Without millions of consumers signing onto exchanges, the risk to insurance companies will be too high. It’s simple math, the more people that sign up now, the lower the percentage of patients with poor health. The lower the percentage of patients with poor health, the greater the savings to the average consumer. The whole basis for the ACA is sheer volume.
Consumers will come if the options they are offered are efficient, fast, simple, understandable and comprehensive. A recent Forbes article sums it up best. “Private exchanges, if they are designed well, may have some critical advantages over their Obamacare-mandated counterparts.” We know, we’re sounding like a broken record here, but 25 years of experience in benefits solutions allows us to. We’ve built it, we know they will come. Hold on to your hats.