Geee Posted February 12, 2014 Share Posted February 12, 2014 Investors Business Daily: Cost Curve: A little-noticed problem is fast emerging in states that decided to set up their own ObamaCare exchanges. Many of them face financial crises once the federal grant money runs out. After taking nearly $4 billion in federal grants to set up and run their exchanges this year, 14 states and the District of Columbia are supposed to be self-sufficient by next year. At least that's what the ObamaCare statute says (which these days doesn't mean much). But from the looks of it, many are heading into a fiscal brick wall. California, for example, is supposed to be a big ObamaCare success story. But it faces a $78 million shortfall next year and a $34 million deficit in 2016. So the state is setting aside $184 million of its federal grant money to offset those projected deficits. Executive Director Peter Lee told the state finance commission that Covered California still faces a "long-term sustainability" problem. Minnesota's MNSure, meanwhile, is looking at deficits equal to 11% of revenues next year and 13% in 2016. Washington state next year may have to make severe cutbacks, including stripping out money budgeted for marketing as well as computer and software upgrades. Hawaii is debating whether to have the state take over its exchange, amid warnings that the "business model will not survive." Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now