(SitNews) Ketchikan, Alaska - The Alaska Department of Health and Social Services released the final report by Public Consulting Group (PCG) on Health Insurance Exchange Planning on Tuesday. As previously reported, Governor Sean Parnell (R-AK) announced that Alaska will not create a state-run health insurance exchange under the new federal health care law. His announcement came the same day that the State of Alaska completed a study on health insurance exchange planning.

“Allocating state dollars and personnel to design and implement an exchange is the most expensive option,” Governor Parnell said. “It doesn’t make sense to spend Alaskans’ dollars to set up an exchange when so much uncertainty exists about how to implement it and how to gain federal approval. Federally mandated programs should be paid for by federal dollars.”

Under the federal health care law, states are required to determine if they will develop and implement state-based exchanges or participate in a federally facilitated exchange developed and run by the federal government. This report provides the state of Alaska with information on exchange development options.

During the first half of this year, the Public Consulting Group (PCG) was contracted to evaluate the options available to the state and to complete a report outlining the differing exchange design options, the required communications plan, a discussion on financial stability, and a financial analysis of the costs of the Exchange. In the process an actuarial analysis of the Alaska market was also completed.

The issues left to be evaluated by Public Consulting Group (PCG) on Health Insurance Exchange Planning's report are considerable. These issues include:

• the type of exchange as well as the governance and administration of the Exchange whether the state or federal government does it;
• how the state’s Medicaid eligibility determination process will be complemented by exchange functions; and
• the long-term financial sustainability of the Exchange, among many other issues.
• The federal law requires exchanges to be self-sufficient by 2015. This presents challenge for Alaska due to the estimated annual cost of exchange operations and the small target population.

Tuesday, Josh Applebee, Deputy Director for Health Care Policy said, “Through our analytical review and deliberative process, we will continue to pursue the best solution for Alaska,” Applebee said . “The report will be an integral part of the policy analysis in the coming days and weeks ahead.”

The same day as the Public Consulting Group (PCG) on Health Insurance Exchange Planning's report was released, Governor Parnell said Alaska will not create a state-run health insurance exchange under the new federal health care law.

Republican governors in at least six states -- Florida, Louisiana, South Carolina, Ohio, Wisconsin & Alaska --have announced publicly to date that their states will not build health insurance exchanges under the Affordable Care Act.

On the Web:

Full Report:

Alaska Department of Health and Social Services released the final report by Public Consulting Group (PCG) on Health Insurance Exchange Planning report

http://hss.state.ak.us/pdf/AKHealthExchangeReport2012.pdf

http://hss.state.ak.us/pdf/ActuarialReport.pdf

Related:

Alaska Says No to Funding Health Insurance Exchange - Governor Sean Parnell (R-AK) today announced that Alaska will not create a state-run health insurance exchange under the new federal health care law. His announcement came after the State of Alaska completed a study on health insurance exchange planning. - More...
SitNews - Tuesday, July 17, 2012

Source of News: 

Alaska Department of Health & Social Services
www.hss.state.ak.us

Office of Governor Sean Parnell
www.gov.state.ak.us

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Ketchikan, Alaska

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