As a Nevada resident, if you purchase an individual health insurance plan that has a Government Subsidy, you currently do that through HealthCare.gov. That’s all getting ready to change, AGAIN! While Nevada already has a state-run exchange called Nevada Health Link, the state is steadily working towards having its own enrollment platform ready to be used by the fall of 2019.

The Transition Away from HealthCare.gov​

This isn’t the first time that the state has attempted to make the leap. A few years ago, Nevada ran its own exchange. Unfortunately, there were too many technical problems to iron out, and in 2015, the state made the switch to HealthCare.gov’s enrollment platform. This provided a better customer service experience for Nevadans, and made health insurance more easily accessible.

The rest of the state-run exchange was left in place, allowing for a significant amount of autonomy. For example, Nevada is the only state in the nation where plans purchased outside the exchange are available year-round, not just during the enrollment period. While subsidies are not available for an off-exchange plan, meaning that enrollees pay full price for their coverage outside of the Governments website, this provides Nevadans with flexibility that residents in other states don’t enjoy. This is a tremendous benefit here in Nevada. We truly are very blessed and lucky to have this benefit.

Using the Government’s Healthcare.gov website provided a much better user experience, but unfortunately, that came at a pretty significant cost. This fall, Nevada residents who purchase individual health insurance coverage will likely do so through Nevada’s own “Exchange”.

Why the Switch Back To Nevada Health Link?

There are several reasons for the transition away from HealthCare.gov. Ultimately, the goal is to provide Nevadans with more affordable health insurance coverage, easier access to the plans that they need, cost the member and the State less money, and have our own State autonomy.

Trimming Down Costs

The primary reason for the switch is to bring down operating costs. In 2018, the federal government charged states that had a state-run exchange but used the HealthCare.gov enrollment platform, like Nevada, a fee that is equal to about 2% of premiums. In 2019, that fee increased to 3%. While this is still lower than the fee paid by states that rely fully on the federally run exchange, the cost is notable. Nevada’s exchange leadership is confident that the state-run platform, which uses better technology, will be considerably less expensive than paying a fee equal to 3% of premiums to continue using HealthCare.gov.

Once Nevada Health Link has fully transitioned to its own platform, the costs associated with leasing the HealthCare.gov platform will no longer apply. This will significantly cut down on technology fees and costs associated with operating a call center. In fact, switching to its own enrollment platform will save Nevada over $18 million for the duration of the contract. On top of that, it will provide a better user experience while giving the Marketplace more efficient access to data and trends to further improve marketing efforts.

Nevada Health Link projected that leasing costs to use HealthCare.gov would amount to well over $13 million in 2020. By operating its own marketplace, the state will only pay out a little over $5 million for a five-year contract, saving millions of dollars in operating costs over time. These lower costs mean lower rates for health insurance providers and savings that may be passed along to consumers.

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Better Access to Health Insurance Coverage

Along with financial considerations, the transition away from HealthCare.gov will enable more Nevadans to access health insurance coverage. Nevada Health Link has obtained state-of-the-art technology that provides a more intuitive, streamlined user experience. This will equip Nevadans with better self-help tools, giving them the ability to do more on their own, and reduce the need for waiting on the phone to get help with routine questions and problems, thus speeding up the application process.

Nevada Health Link will also have better access to meaningful customer data, providing valuable insight into what Nevadans need and what their health insurance experience should provide. This will better allow the Exchange to keep their existing customers and show how recruitment efforts should be directed. If there is a particular region or demographic that is having difficulty obtaining health insurance coverage, Nevada Health Link will be in a better position to address it. Through access to real-time enrollment data, Nevada Health Link will be able to more easily identify successful outreach and marketing and be able to improve advertising campaigns across the board, improving enrollment and eventually reducing costs even more.​

Maintaining Nevada’s Autonomy

State autonomy is a high priority for Nevadans and is essential in ensuring that state residents have access to the health insurance coverage that they need. Currently, Nevada’s Exchange has been largely subject to the rules set at the federal level for HealthCare.gov. By transitioning to a state-based exchange, Nevada Health Exchange will have full autonomy and the freedom to run its own marketplace and focus on the needs of Nevadans.

Currently, there are 12 other states that already operate their own private enrollment platforms, giving Nevada Health Link the ability to use tested and proven technology and innovative, unique tools that are specifically designed for state-based marketplaces. This will allow for a user-friendly experience with greater flexibility and enrollment administration.