Bizzarro: New state-based insurance exchange a huge win for state’s insurance consumers
HARRISBURG, July 3 – State Rep. Ryan Bizzarro, D-Erie, lauded Gov. Tom Wolf’s signing of legislation Bizzarro co-sponsored that will create a state-based insurance exchange for private plans under the Affordable Health Care Act.
“This new law is tremendous news for the nearly 400,000 Pennsylvanians who rely on private insurance under the ACA and have been dealing with rising premiums,” Bizzarro said, noting that in the past, insurance consumers have relied on an insurance marketplace run by the federal government.
“By stepping in and establishing its own state-run exchange, the commonwealth is paving the way for a more efficient system that will generate millions in savings. It’s a classic case of the state being able to accomplish something more efficiently than the federal government – with the savings realized going directly to the benefit of our state’s insurance consumers.”
Bizzarro said Pennsylvania can operate its own insurance exchange at a cost of nearly one-third the amount the federal government collects from insurers to operate the federal exchange. The state can then use those millions in “user fees” no longer being paid to the federal government to create a reinsurance plan that will help insurers defray their risk.
“The winner in all of this will be the state’s insurance consumers, who will benefit from lower, more stable premiums,” Bizzarro said. “We know these kinds of plans work because they are already working to lower premiums in other states that have adopted state-run exchanges.
“The best part is, the system pays for itself. There is zero cost to the general fund and zero cost to the taxpayer. It’s a true win-win for everyone. I’m excited to watch as the new system takes shape and begins to produce greater benefits – and fewer worries – for Pennsylvania’s health care consumers.”