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Can Private Healthcare Exchanges Function Better Than Federal Marketplaces?

A rising question after the failure of the federal marketplace is surrounding the private healthcare exchanges – can they function better than the broken federal marketplace. Due to the unforeseen problems that marred the success of the federal marketplace, Americans are now wondering if going for a marketplace model makes any sense at all. If we rewind back a few years, this concern is not entirely new for private healthcare systems.

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Back in 2006, Americans felt that health insurance is a government thing, and the onus is on the government for providing complete healthcare systems for the masses. The people were not really initiated towards the concept of a private health care exchange, but this was about to change soon. By 2013, the majority of Americans has moved away from that ideology, and now nearly 60% of Americans feel that insurance is best handled privately. Major change has come from 2007, and in the period from 2007 to 2013, people have started feeling that:

  • The government cannot handle the rising action in the health insurance business. Any attempt towards streamlining the industry has only caused more hurdles than benefits for the population. The recent example of this is the failure of Obamacare exchanges. While private health insurance exchanges are working perfectly well and taking the role of retiree insurance marketplace for various organizations, the federal marketplace is suffering from a broken website that is preventing the masses from enrolling.

  • The current government is incapable of meeting their expectations, be it health or any other. The Obama administration is losing its sheen, and a lot has to do with its poor effort in the health insurance business. As compared to private benefits exchanges operational in the country at this moment, the federal marketplace is a halfhearted effort that shows lack of planning, poor implementation and use of poor technology. To implement Obamacare, the government could also have made use of the direct enrollment feature for private health exchange. Through this feature, the government wouldn’t have to face an embarrassing performance with the federal marketplace, and could have easily instilled a new faith in the masses.

  • There should be a way for private healthcare exchanges to provide subsidies and all the functionalities of the federal marketplace. It is evident that these exchanges are technically superior to what the administration has constructed in 3 years, and it makes good sense for the government to use this platform to make amends. Through this move, the officials can also move the limelight away from them, giving private exchanges the publicity they need at this moment and making them look a viable option for buying health insurance.

By tapping what America has to say about the health reform and making private exchanges look better than they do currently, the government must make effort. This is the right time to utilize the technical ability of private healthcare exchanges, deliver on the expectations of Americans and save its face, all with a couple of moves.

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