May 6, 2014
Ernesto McConnell
Reporter
Headlines
The District of Columbia is facing major funding issues for its health exchange. The District’s website, also known as the D.C. Health Link, lacks the sheer volume of buyers of health insurance necessary to generate enough funding to remain self-sufficient. To meet the District’s annual budget of $28 million, it would have to charge 17 percent on every healthcare plan sold on the website. To reduce the percentage of the taxes on the website, Mayor Vincent Gray will speak with the D.C. Council, asking them to pass legislation that will allow the District’s exchange board extremely broad power to tax any type of health-related insurance item; according to Gray’s new plan, whether or not the newly taxed insurance is sold or bought via the District’s website will not matter. Plans affected include, but are not limited to, dental, vision, disability, and long-term medical care. Privately owned insurance companies do not like Gray’s proposal, claiming the D.C. Health Exchange only has power to tax insurance within their jurisdiction, or in other words, bought and sold on the Health Link. D.C. Health Link executive director, Mila Kofman, claims that all insurers will benefit from the new policy.
