State must take initiative on health exchanges

By Hunter Parks

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It has been over one year since President Obama signed his health care reform plan into law. Most Americans opposed the plan, but while we await the federal court challenge and hope that the entire law is thrown out, it is important to implement Iowa's portion of the federal law in the best form possible to avoid the federal government stepping in.

The main focus for implementation of the new health care law is establishment of state-run health insurance exchanges. If properly developed, the state exchanges should make a bad situation better.

Iowa, a pro-business state with a thriving private insurance industry, would suffer greatly from federal intervention. Because compliance is unavoidable, we must now consider the best exchange system for private insurance companies doing business in Iowa.

Insurance exchanges are designed to allow employers that are now required to participate in the federal program to shop, compare and enroll employees in health insurance coverage.

The law requires that each state's exchange be operational by January 2014 and self-supporting by January 2015. Most states are just now beginning the process.

No exchange has been enacted in Iowa. Lawmakers have until January 2013 to make sufficient progress or the federal government will step in and do it for them. We do not want the Obama administration, which originally wanted single-payer health care, to design and be in charge of Iowa's health insurance exchange.

Iowa's competitive advantages in insurance are quite pronounced. According to the Iowa Department of Economic Development, 41,100 insurance industry professionals are employed in the state, and Iowa's insurance industry output as a percentage of gross domestic product ranks second among the nation.

Lawmakers must ensure that Iowa's exchange does not go beyond what is required by law. Craft a plan that offers a large variety of health plans and coverage options to make certain that competition is not stifled. Finally, Iowa state leaders must foster a market-based insurance environment that is favorable to both businesses and consumers.

State officials must establish a responsible exchange policy next year to avoid giving the federal government unprecedented market control in our state. To prosper, we must steer clear of federal mandates and support policies created by Iowans for the benefit of Iowans.

Hunter Parks is the president and owner of Hunter Companies, an organization comprised of Hunter Construction Company, Hunter Homes, Hunter Properties, Hunter Development, and Hunter Property Management. Comments: hunterparks@hunter-companies.com