Linda Tiano Quoted in Article, “With Just Nine Months ’til Open Enrollment, 2013 Will Be Perilous Year for Exchanges”

AIS' Inside Health Insurance Exchanges

Linda Tiano, a Member of the Firm in the Health Care and Life Sciences practice, in the Washington, DC, office, was quoted in an article titled "With Just Nine Months 'til Open Enrollment, 2013 Will Be Perilous Year for Exchanges."

Following is an excerpt:

If everything goes according to plan, 2013 will be the year that exchanges transition from policy to actuality — that means real entities with enrollees, carriers and vendors, and fully functional state and federally facilitated exchanges (FFEs). ?...

As rules are finalized by HHS, health insurers this spring will have the information needed to build and price their products, and by summer, the industry will have a clear understanding of how adverse selection will be averted through the risk adjustment, reinsurance and risk corridor provisions of the Affordable Care Act. ?...

State exchanges must finalize their qualified health plan criteria soon, but just a few states have gotten that far, says Linda Tiano. ?...

"An eight-month turn-around time for new products and rates is aggressive in a normal environment, but when you consider that the plans are still not in a position to submit their benefit materials to regulators — and that all of the plans will be submitting them simultaneously — it raises serious doubts about the ability to complete everything on time." ?...

The expected high coverage costs, combined with low penalties to consumers who go without coverage, makes it likely "that many people who believe they are healthy will not purchase insurance, at least right away," says Tiano. ?...

"Although there will be considerable public pressure to hold rates down, it remains to be seen how high the premiums will be and how many people actually purchase insurance."