Promoting Competition in the Health Insurance Marketplaces
<p>Early indications are the individual health insurance marketplaces created by the Affordable Care Act are fostering competitive environments where insurer participation is rising and plans are competing for customers.</p><p>In a new Commonwealth Fund issue brief, Georgetown University’s David Cusano and Kevin Lucia explore the strategies used by regulators and marketplace officials in Kansas, Nevada, Rhode Island, and Washington to promote competition:</p>
<ul>
<li>educating consumers and making it easier for them to compare their coverage options</li>
<li>encouraging new insurers to participate and working directly with them to smooth the entry process</li>
<li>ensuring a level playing field through effective rate review.</li>
</ul>
<p>The next step is for plans to compete on value, not just price. This may just be a question of time, the authors say, as insurers gain more complete claims data to evaluate risk as well as a more stable regulatory and competitive environment. </p>