Government-run insurance exchanges: hampered by finances, complexity, and incompetance

In the Wall Street Journal, John Goodman explains why “The Government Is the Worst Vendor Possible for Managing Health-Insurance Exchanges.” Excerpts:

One problem is that too little money was budgeted for creating the exchanges, which are the online markets where people can choose among competing health plans and prices. …

A second problem is complexity. The Obama administration wants something the federal government has never done: a computer system that connects HHS, the Internal Revenue Service, the Social Security Administration, Homeland Security and perhaps other departments. This is a herculean task with unclear benefits. …

A third and much bigger problem is competency. … In July 2011, Fortune magazine reported that the government is spending $80 billion a year on buying and operating information technology, and much of it is simply wasted.  …

One of the worst mistakes the federal government makes is the tendency to try to reinvent systems the private sector has already invented. The government has been true to form under the health-reform law, completely ignoring private exchanges that are up and running.

John Goodman: Navigating the ObamaCare Maze – WSJ.com.

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Filed under insurance, tax code, HSAs, Policy - National

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