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The fate of the Affordable Care Act is uncertain as the Supreme Court is still pondering over the constitutionality aspect of the Affordable Care Act and a ruling is expected only by June 2012. Taking this into account some US states have slowed down or entirely discontinued their health insurance exchange implementation efforts. In view of this, it is a surprising development to see Governor Andrew Cuomo issue an executive order for the establishment of New York State Health Insurance Exchange (HIX). The ACA proposed model for online insurance marketplaces – health insurance exchanges – has been popular among US insurance consumers and several insurance providers. However, legislatures across most states have been largely divided on the health insurance exchanges proposal since the model was first proposed in 2010. The New York state witnessed the same divided opinion, with several congresspersons reluctant to cast their vote in favor of the health insurance exchange, owing to the uncertainties revolving around the Affordable Care Act and its controversial Individual Mandate clause. The executive order issued by the New York governor would pave the way for the establishment of New York Health Insurance Exchange. The New York state has received several grants from the US Department of Health and Human Services (HHS) – Early Innovator grant, Exchange Planning Grant & Establishment Grant – to setup its state health insurance exchange. However, the HIX implementation plans had been on hold until now due to the mixed opinion of state legislators, some of who believed that establishing an exchange would deplete the state of its resources, in the case that the Supreme Court deems the entire ACA as unconstitutional. However, Gov. Cuomo believes that the exchange would reduce the health insurance costs for the state residents owing to tough competition among insurers. Gov. Cuomo said the establishment of exchanges would allow small business owners to pay less for employee coverage and individuals would also be able to enjoy low health insurance costs. The health insurance exchange is expected to allow millions of New Yorkers who currently do not possess health insurance, to afford health insurance. New Yorkers belonging to low-income levels would be eligible for federal subsidies while purchasing health insurance. Until the plan year 2017, employers with 100 or lesser number of employees would be able to purchase their insurance through an exchange. Beginning 2017, states can allow all employers irrespective of their organizational size, to purchase health insurance from exchanges; however, the jurisdiction to allow so rests solely with the state government. The executive order permits local advisory committees – small business representatives, brokers, insurers, agents, consumer advocates, health care providers and other healthcare participants – to advise and submit their inputs for the establishment of the NY state health insurance exchange. New York has become the 5th state to issue an executive order for state health insurance exchange establishment and has joined the league of states such as Alabama, Indiana, Minnesota, Rhode Island who had earlier issued executive orders for establishing insurance exchanges. Author is a well known authority on healthcare Technology in the US. He is currently looking to expand his expertise in Healthcare software solutions and Insurance software solutions available.
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