Issue Brief | Jul 29, 2015

Assessing a New Option: The Feasibility of Contracting With a Single Firm to Build and Operate a State’s Marketplace

Jon Kingsdale, Wakely Consulting Group

Since the passage of the Affordable Care Act (ACA), the design of state health insurance exchanges has evolved to include several distinct models.  This evolution has led to the possibility that a state’s exchange development and operations could be delegated to a private vendor.  States operating their own state-based marketplaces (SBMs) may begin to consider other options as they confront budget challenges and look to streamline operations.  This issue brief, developed by Wakely Consulting Group, assesses the feasibility of a state delegating the development and operation of its SBM to the fullest extent possible to a private exchange operator and offers potential advantages for states that may be considering such an approach.