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Insurance Surcharges Will Fund Most Online Exchanges Created Under Health Law

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Republican governors in Florida, Virginia, Texas and several other states say they’re reluctant to build the online insurance markets required by the federal health law because they’re worried about getting stuck with the bills.

"That’s not a good value proposition for the people of Virginia or any other state," Virginia Gov. Bob McDonnell told Fox News last month.

But Democrat-controlled California, which will run the country’s largest insurance market, will do so without taking a cent from the state treasury. Instead, operations of the market, also called an exchange, will be financed by a surcharge on the billions of dollars in insurance premiums sold in the exchange

Read the full story: http://bit.ly/11woCjG

Source: Kaiser Health News

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