Introduction Exchanges are the centerpiece of the new ACA legislation and are due to cover millions in January 2014. Unfortunately, there are many flaws in the concept and roll out that may just cause the program to fail. That said the definition of success and failure will be significantly different based on the two political factions. My definition of failure would be enrollment less than projected, covering less currently uninsured than projected and the financial failure or withdrawal of more than 5 plans nationwide after the first year. Based on this definition here are some of the reasons I think the exchanges could fail. Exchanges The concept is simple – offer preset plans from many different insurance carriers for small groups and individuals at competitive rates with no pre-existing limitations. The initial foray will be offered to groups fewer than 50 and individuals. Anyone under 400% of the FPL will be eligible for subsidies. Also to help prod enrollment amo...
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