Kentucky lawmakers are hearing the benefits of the state-based insurance exchange, Kynect. Officials said the platform provides an integrated eligibility and enrollment system that allows Kentuckians to get and complete applications for Medicaid, the Child Health Insurance Program, and the Supplemental Nutrition Assistance Program. However, some lawmakers expressed concerns.
Lisa Lee is the commissioner for the Kentucky Department for Medicaid Services. She said maintenance funding for the state-based exchange is based on carriers that sell qualified health plans.
“We call those QHP’s through the state-based exchange. So, those health plans pay a fee or a percentage of the premiums per member per month. And that is how a state-based exchange is funded,” said Lee. “It functions very similar to the federal user fee that states who use healthcare.gov rely on.”
Lee added the revenue from these company paid fees are reinvested into the system in exchange operations, IT, consumer assistance, call centers, outreach, and plan management.
David Barry, assistant director for the Kentucky Cabinet of Health and Family Services’ Health Plan Oversight Division, said compared to the federal exchange, the state program has a more sophisticated portal that better provides the right coverage at the right time for the right person.
“We’re Kentuckians helping other Kentuckians. Our contact center is local. We have DCBS in every county, some counties have two,” Barry said. “We have connectors and licensed insurance agents in every county. It’s neighbors helping themselves.”
While the state exchange still goes through the IRS to verify income claims, some lawmakers had concerns for the possible manipulation of the platform. They questioned the state’s ability to compete with the federal exchanges data resources that aid in confirming eligibility.
Officials with Kynect said the goal of the program is to offer the most affordable healthcare and benefit options per individual applicant. For example, an adult might qualify for one product on the exchange, but their child qualifies for Medicaid or CHIP. More information is available at kynect.gov.