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State-based Insurance Exchange bill vetoed in NJ

The fact that Chris Christie vetoed a bill which would have allowed insurance exchanges to operate in NJ indicates that he does not have confidence in the implementation of the insurance exchange program developed under the affordable care act.  New Jersey will default to the Federal Option.  NY and CT  declared moving toward a state-based exchange system while DE is utilizing the State Partnership Option    Selection of a state-based, federally based or state-partnerships must be declared to Secretary Sebelius by December 14, 2012.  State-based exchanges maintain control over which qualified health plans (QHPs) operate within the state while partnerships utilize a combined state/federal management model with the hope of transition to a fully-funded state-based exchange.  Those declining to establish a state-based exchange default to the federally managed option wherein the federal government will adopt a clearinghouse model and allow any QHP and ´╗┐´╗┐will determine individual eligibility for tax credit and cost-sharing benefits.  Citing the unknown cost to the NJ residents, Christie opted for the federal option, also without knowing what the cost will be for the residents.   Only time will tell how this new healthcare world will unfold.


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