Sorry, No Exchanges

Health insurance exchanges, where consumers can buy government designed and approved health insurance, are required to be in place by 2014.

Get this.

If the states decide not to set up an Exchange, the federal government will step in an run it.

Why would states put their money in an Exchange when they can take a pass and let the fed's run it?

Earlier today HHS Sec. SheBeLost announced new rules for establishing the exchange. She was accompanied by U.S. Atty. General Holder.

One can only assume she needed back up after her poor performance last week when she testified before a Senate Appropriations Subcommittee and appeared as coherent as Charlie Sheen after consuming Tiger Blood.

She said that these new marketplaces would offer Americans "one-stop shopping for health insurance," where insurers would compete for their business.

So, how is that different from the current market place where insurers can go to a site such as eHealthinsurance and compare plans?

“More competition will drive down costs and exchanges will give individuals and small businesses the same purchasing power big businesses have today,” she said.

OK, but if carriers continue dropping out of the market, and if the only plans that can be sold are those that meet government standards, how does this create more competition?

The final rule also provides that states must levy user fees to insurance companies, not consumers.

Let's think about this for a moment

States MUST levy fees on insurance companies that participate in the Exchange, but may not levy fee's on consumers.

Do you suppose the carriers might pass these fee's on to consumers in the form of higher premiums?

Even a stooge can figure that one out.