State health exchange becomes law in shadow of Medicaid expansion fight

HB 1647 also creates the Mississippi Health Insurance State Exchange Trust Fund that is to be used to support the creation, implementation or operation of the state exchange overseen by the Commissioner of Insurance. The Trust Fund is funded through a 3.5 percent fee assessed on the gross premiums charged on all policies sold on the exchange. This will allow the state to keep a portion of the funds it is currently sending to the federal government. A Comprehensive Health Insurance Risk Pool Association is also empowered to develop and fund an online portal that will be available to all Mississippians to assist consumers in selection of a health plan. The association will aggregate information regarding providers, drug coverage and pricing for consumer review. State Senate Josh Harkins, the Senate Finance Committee Chairman, said Mississippi will have a leg up in this area. “Commissioner Chaney told us at the end of the session that Kentucky has offered to give us their software for free, and his office will run it,” Harkins said. “That’s a huge deal.” Harkins noted that the Centers for Medicare and Medicaid Services has held the Bluegrass State’s state-based exchange as the standard for how other states should operate. The lawmakers believe the state – through the Insurance Department – having more control over the marketing of the exchange as well as managing the access points for consumers to interact and review plans will be helpful.  “I think it’ll be a net positive for Mississippi,” Senator Harkins said.