ObamaCare Exchanges Are Losing Money
The reason 35 states chose not to build a local ObamaCare exchange – even though the federal government made billions of dollars available to do so – is pretty simple: After an initial burst of funding the a state must foot the bill to maintain it.
That’s turning out to be a very costly proposition.
“The case of Oregon is the most extreme,” explains an editorial in the Washington Examiner. “After spending $200 million to develop its own health insurance exchange, the Beaver State was forced to abandon it altogether because of pervasive and intractable technical problems.”
It gets worse.
“Tiny Vermont spent roughly $4,000 for every uninsured Vermonter to develop its exchange – more than enough to buy a pre-ObamaCare policy for everyone for an entire year,” says the editorial. “And yet after spending so much, the Green Mountain State may soon follow Oregon’s lead in abandoning its creation. Minnesota faces a similar situation.”
Recall that ObamaCare’s upfront establishment grant money was designed to make it seem like the controversial health law didn’t add to the federal deficit by enticing states to take on the legacy costs of operating the exchanges. With Healthcare.gov becoming the de facto nationwide ObamaCare exchange, that gamble has backfired, but not before wasting lots of taxpayer money.