Massachusetts Becomes Latest State to Ditch Their Own Exchange
The Affordable Care Act exchange in Massachusetts is messed up beyond repair. The state announced it is going to get rid of it and replace it either with a new exchange based on software from one of the more successful states or by moving to the federal exchange. From the Boston Globe:
Massachusetts plans to scrap the state’s dysfunctional online health insurance website, after deciding it would be too expensive and time-consuming to fix, and replace it with a system used by several other states to enroll residents in plans.
Simultaneously, the state is preparing to temporarily join the federal HealthCare.gov insurance marketplace in case the replacement system is not ready by the fall.
The strategy announced Monday will still cost an estimated $100 million, and it creates many uncertainties, especially for insurance companies and consumers. Some customers might eventually need to change insurance plans.
This is the second state that has needed to ditch its state based exchange. Last month Oregon finally decided to move to the federal exchange.
It also might not be the last state this year that will scrap their own expensive exchange and move to the federal one. The system in Maryland is still problem ridden.