Allowing U.S. health insurers to build interfaces that bypass portions of the federal insurance website www.healthcare.gov would be a positive for the industry, according to a report by Fitch Ratings. While the alternative websites are unlikely to be developed, the ability to bypass could improve the quality and timeliness of the data that insurers receive regarding new exchange-sourced policyholders.
The government website has been plagued by technical problems since its launch two months ago, making it challenging for health insurers to get accurate information about enrollees. The complexity of the website could contribute to misinformation and lead to lower profitability in health insurers’ exchange-sourced businesses.
With that said, Fitch says that its questionable that insurers would be interested in committing the resources to build their own sites or get in the middle of the website controversy. In addition, the government would probably be very hesitant to allow the interfaces. They could be viewed as limiting the marketplace by reducing consumers’ ability to comparison shop.
Fitch Ratings says that geographically concentrated health insurance companies are likely to add the most enrollees from state-sponsored health insurance exchanges formed under the Affordable Care Act, particularly Blue Cross/Blue Shield plans. Fitch attributes this to the single-state focus of many of these insurers, typical large market shares in their respective states, and a common focus on providing consistent health insurance coverage. For more information, visit www.fitchratings.com.
