What Gov. Christie Can Teach Us About the NJ Health Insurance Exchange

With all eyes on the fiscal cliff matter that was before our federal government, not much is being said these days about the status of the Affordable Health Care Act from the Obama Administration.

The Health Insurance Exchange May Adversely Affect the Finances in New Jersey

It has been only a few short weeks since Gov. Christie vetoed the idea of having a health insurance exchange in the state of New Jersey versus having the federal government take on that duty. Gov. Christie has made it widely known that he feels if New Jersey enacted a health insurance exchange, it may adversely affect the finances in our state. The health insurance exchange is meant to be a less expensive alternative to buying health insurance from a standard insurance company, however, all the provisions of how to set up an exchange have not yet been outlined by our federal government. So, as it stands today, only 20 states have agreed to fund and begin a health insurance exchange.

Governor Christie has been quoted as saying, "I will not ask New Jerseyans to commit today to a state-based exchange when the federal government cannot tell us what it will cost, how that cost compares to other options, and how much control they will give the states over this option."

Health Insurance Plans and Coverage Are Too Complicated for One-Stop Shopping

It is also a safe assumption that by enacting a health insurance exchange, the intention will be to eliminate New Jersey insurance brokers from marketing these plans. The New Jersey state legislature as well as US Sen. Robert Menendez feel that an exchange could be one-stop shopping for people or businesses seeking health insurance, allowing consumers to compare the benefits and costs of participating plans.

As a 30-year insurance broker, I agree that I have a vested interest in the future of health insurance in the state of New Jersey. Like other businesses, I pay a huge amount of money every year to maintain a group health insurance policy for my employees. I also happen to know there is no way possible a state or federal government will be able to completely describe all the plans and insurance coverage the way they are now proposing.

I applaud Gov. Christie for not allowing this exchange to start in New Jersey without having all those questions answered on how this exchange will be fully funded and how it will be organized.

For more Affordable Health Care Act updates, check out our health insurance blog. You might also be interested in:

• The Future of Health Insurance Rates: My Crystal Ball Has Cataracts
• NJ Health Benefit Exchange Act Approved by Assembly Panel