It’s being called a backflip or is that a change of heart? Oregon is reportedly investigating the feasibility of switching back to its old health care exchange in order to avoid fees associated with the new federal one.
That move is notable because the state was the first to replace its own health insurance exchange with the federal exchange. Now, according to the Associated Press, new fees to use Healthcare.gov could lead to a reversal.
Up until now, the federal health insurance portal has been free. That’s set to change for some states, with Washington planning to charge a fee in the future. Oregon is balking at what could be a $13 million tab annually. Officials say they’ll move to request proposals for software to replace that system.
The federal fee is proposed at 3% of monthly premiums and would be paid by insurance carriers that offer plans in Oregon through HealthCare.gov.
Presumably, those carriers would then pass on costs to consumers in the form of higher premiums.
It was only in April that Oregon switched to the national exchange, citing it as a cost-effective alternative. Oregon residents now use HealthCare.gov to enroll in coverage. But for how much longer?
