Republicans took aim at how states are managing their own Obamacare exchanges, querying how the states spent more than $5 billion in federal funds.
A state could set up its own healthcare exchange or use the federally run healthcare.gov to sign up Obamacare enrollees. The federal government has awarded $5.51 billion to help establish marketplaces.
Fourteen states run their own exchanges, and three others have their own exchanges but use healthcare.gov to sign up residents.
The money was supposed to run out in 2014 so that state-run exchanges would be self-sustaining by then.
The hearing focused on the use of those funds and problems with the exchanges.
“State exchanges are still struggling,” said Rep. Tim Murphy, R-Pa., chairman of the House Energy and Commerce oversight and investigations subcommittee. “They continue to face IT problems, lower than expected enrollment numbers and growing maintenance costs.”
A prime target for Republicans on the panel was Covered Oregon, the state’s now-defunct exchange. Covered Oregon received $305 million in federal grant money.
“The problem is when the lights came on, the curtain came up,” said Rep. Greg Walden, R-Ore., who noted that the exchange was plagued with information technology problems.
During the first open enrollment period in 2013, Oregon residents were forced to use paper to sign up for healthcare.
The exchange was dissolved earlier this year and residents used healthcare.gov to sign up for Obamacare in the previous open enrollment period.
Oregon officials said the marketplace has been successful. It enrolled nearly 70,000 people in the first open enrollment and more than 100,000 through healthcare.gov, according to Patrick Allen, director of the Oregon Department of Consumer and Business Services. The department took over the exchange.
Other states have fared better, one of which is Covered California.
“In California, insurance rates are under control,” said Peter Lee, CEO of the state-based exchange. Covered California recently announced a premium increase of 4 percent next year, which is less than the double-digit increases before Obamacare, Lee said.
Republicans have pointed to potentially high insurance rates as evidence the law isn’t working. However, supporters said that the rates still need to be finalized.
Democrats said that lessons about the implementation of the state marketplaces need to be learned, but Republicans need to look at the big picture.
“Make no mistake, the Affordable Care Act is working,” said Rep. Frank Pallone, D-N.J., the top Democrat on the full committee.
