PROVIDENCE – The first step in establishing a Rhode Island health insurance exchange was taken by R.I. Senate President M. Teresa Paiva Weed, who filed legislation Jan. 28 called The Rhode Island Health Benefit Exchange Act.
Health insurance exchanges are mandated to be operational by 2014 under the federal health care reform law. Under the proposed legislation, Rhode Island would establish a quasi-public agency to oversee the creation of such an exchange – described as a marketplace for small businesses and individuals to learn about options, shop and purchase health insurance.
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The creation of the quasi-public agency would also facilitate the state’s ability to obtain federal funds available for the planning and operation of the “health benefit exchange.”
Under the bill, the R.I. Health Benefit Exchange would be governed by an 11-member executive board, including Richard Licht, as director of the Department of Administration; Chrisopher F. Koller, as the health insurance commissioner; Steve M. Costantino, the secretary of the Executive Office of Health and Human Services; and eight public members appointed by the governor with advice and consent of the R.I. Senate.
The legislation explicitly prohibits board members from being employed by or affiliated with an insurer, insurance agency or broker, health care provider, health care facility or clinic.
“This is the centerpiece of our health care reform implementation,” said Paiva Weed. “The exchange will create a health benefit marketplace that is fair, competitive, transparent and understandable to individuals and small businesses. It will also have the important job of getting federal subsidies to the people who need them.”
