For instance, how can Nevada’s Silver State Health Insurance Exchange (SSHIX) end up in the red at the end of its first year of operation? Thus far, SSHIX has enrolled only 13 percent of its goal of 115,000 enrollees by the end of March.
Nevada is not alone as many other states struggle to find legitimate sign-ups that actually follow through and pay their premiums.
That’s the key, not signing up but rather paying up.
Last Wednesday, Investor’s Business Daily, reported that the federal government had provided $4 billion in federal grants to 14 states, including $90 million to Nevada and the District of Columbia, to set up and operate exchanges.
The end result of $90 million taxpayer dollars is enrollments far short of providing enough revenue to cover costs.
IBD reports that California is halfway to its enrollment goal but still faces a deficit of $78 million this year. Deficits are also being forecast in Minnesota, Washington state, Hawaii, Rhode Island and Oregon. Just three lonely states of the 15 non-federal exchanges claim to have reached their enrollment goals.
Now there’s word that several states are considering closure of their exchanges and sending their residents onto the federal exchange. That’s the equivalent of exchanging a dollar for four quarters.
Federal exchanges have signed up less than half the number projected, and some of those have not yet paid their premiums.
Again, the Obama administration paints a rosier picture. They are counting noses that have been window shopping, but not coming in to buy.
That’s the government’s way of calling it business.
Window shopping curiosity-seekers.
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