In Vermont, Frustrations Mount Over Affordable Care Act
BURLINGTON, Vt. — Just a few years ago, lawmakers in this left-leaning state viewed President Obama’s Affordable Care Act as little more than a pit stop on the road to a far more ambitious goal: single-payer, universal health care for all residents.
Then things unraveled. The online insurance marketplace that Vermont built to enroll people in private coverage under the law had extensive technical failures. The problems soured public and legislative enthusiasm for sweeping health care changes just as Gov. Peter Shumlin needed to build support for his complex single-payer plan. Finally, Mr. Shumlin, a Democrat, shelved the plan in December, citing the high cost to taxpayers. He called the decision “the greatest disappointment of my political life.”
As the United States Supreme Court prepares to rule in a case that could gut a major element of the Affordable Care Act — federal subsidies for low- and middle-income people — Vermont should have little to worry about. Only states that use the federally run insurance marketplace stand to lose subsidies if the court rules against the Obama administration, and Vermont is among the 14 states that fully run their own.
But even though its residents’ subsidies appear safe for now, Vermont stands as a cautionary tale. Despite an eventual cost of up to $200 million in federal funds, its online marketplace, or exchange, is still not fully functional, while disgust with the system is running deep among residents and lawmakers alike.
Meanwhile, the hopes for a single-payer system, once tantalizingly close, may be lost for years. Under such a system, the government operates one health insuranceplan for all residents, covering their medical costs instead of having private insurers do it.
“It’s just been a spectacular crash, really,” said State Representative Chris Pearson, a member of Vermont’s Progressive Party. “We’ve gone from this vision of being the first state to achieve universal health care, to limping along and struggling to comply with the Affordable Care Act.”
State Obamacare Exchanges Experience Growing Pains
The states that set up their own insurance marketplaces have nothing to lose in King v. Burwell, the big Supreme Court case that will be decided by the end of June. But that doesn't mean those states are breathing easy.
With varying degrees of difficulty, all of the state-based exchanges are struggling to figure out how to become financially self-sufficient as the spigot of federal start-up money shuts off.
Here are dispatches from Minnesota, Colorado and Connecticut on this tricky transition.
Minnesota – Tough Politics
Even though Minnesota's exchange, MNsure, ran much more smoothly in its second year than its disastrous first, some Republicans opposed to Obamacare from the beginning hoped to do away with it this legislative session.
"This has been an abject failure from day one to present. If you're denying that, your head is in the sand," says state Rep. Nick Zerwas.
His colleague, Rep. Nancy Franson, agrees: "We should have never gotten into the exchange. We should just move straight to the federal exchange and bypass the state of Minnesota."
Even the Democratic architect of the law that created MNsure wanted to dissolve its board and make MNsure a state agency.
In the end, lawmakers ended their session leaving MNsure intact. But they voted to ask the feds to allow Minnesotans to get tax subsidies for health insurance regardless of whether they shop on the open market or through MNsure.
The legislature also created a bipartisan task force to consider MNsure's future. Republican Rep. Matt Dean says those relatively small measures make a big point.
"The final agreement I think that we have going to the governor right now acknowledges that there's major trouble with MNsure, that the current situation is not sustainable," Dean said.
Democratic Sen. Tony Lourey helped create MNsure. He likes the idea of letting Minnesotans shop outside of MNsure and still get subsidies, but, he says, "I'm not particularly optimistic that it would be approved by federal officials. If it were approved, I think we would have to talk about then how do we structure the financing of the exchange."
He says it would be even more difficult to fund the exchange with far fewer customers unless they could bring in new money.
One option is to add a tax to all health plans sold, not just those sold on MNsure.
Meanwhile, with fewer people signing up for plans through MNsure than anticipated, revenue is way down. That coupled with federal money drying up by year's end has MNsure moving to cut $2.5 million from its budget over the next three years.
--Mark Zdechlik
Colorado – Glitches And Expenses
Colorado's exchange has cleared its political hurdles for the most part, but technical glitches and financial challenges remain.
Marc Drillings knows this all too well. He wanted to buy insurance on the Connect for Health, Colorado's exchange.
................This story is part of a reporting partnership with NPR, local member stations and Kaiser Health News.
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