The Health Benefit Exchange and the 2015-17 budget

By: Emily Makings
12:00 am
April 20, 2015

Both the House and Senate 2015-17 operating budget proposals would provide additional funding for the Health Benefit Exchange (HBE). As I’ve written, the HBE budget depends partially on its enrollment numbers, which were not as high as the HBE had hoped. Along with the 2 percent tax on premiums, other sources of income are a fee on insurance companies and Medicaid cost-sharing.

The HBE had requested an additional $67 million for the biennium; Gov. Inslee’s proposed budget would fund that request (see the table below for the fund breakout). But neither the House nor the Senate would provide that level of funding. The House would increase total budgeted funding for the HBE by $44.0 million. The Senate would increase total budgeted funding by $6.0 million.

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Included in the House numbers are funds to maintain HBE staffing ($4.4 million total budgeted funds), for the customer support call center ($18.2 million), for in-person assisters to help people enroll ($6.4 million), for the website’s information technology systems ($12.5 million), and to support operations ($2.0 million).

Both the House and Senate would utilize federal grants in lieu of state funds and provide funding for Medicaid-related costs (Medicaid enrollment is handled through the HBE website).

Additionally, both proposals assume that the HBE will stop collecting premium payments from enrollees. Under 2SSB 5142, the health plan carriers would collect premiums instead of the HBE. The Senate has passed this bill (48-1).

The Senate has also passed ESB 6089 (26-22), which would also require the HBE to stop collecting premiums. Further, it would no longer receive the premium taxes paid on plans purchased through the exchange. Instead, the HBE would have to be self-sustaining using carrier fees, Medicaid cost-sharing, and federal grants.

Categories: Budget , Categories , Health.
Tags: 2015-17