Long-term Operational Costs Sample Clauses

Long-term Operational Costs. As documented in the Arkansas Planning Review Report letter from our project officer dated July 10, 2012 (see Appendix C), “a key risk identified by the Arkansas team was difficulty in maintaining State support of the Partnership Model without clear information on the following topics: long-term operating costs and funding of Partnership functions, use of fees on the FFE…” With the continuing absence of any guidance on these issues, HBEPD has done minimal work to establish the financial management infrastructure for the Exchange in Arkansas. Cognizant of the requirement that Exchanges must be self-sufficient after 2014, Arkansas’s Exchange Planning background research provided a high level estimate of Exchange operational costs and revenues when Arkansas was still exploring a State-based Exchange. Using background research actuarial projections of average premium costs per month in 2014, and applying Arkansas’s current 2.5% premium fee to the estimated number of private plan enrollees in 2014, it was estimated that premium fees could be a source of financial sustainability of the Arkansas operated Exchange. The potential for using these fees to sustain Arkansas-operated components of the FFE Partnership has not been addressed. Arkansas awaits federal guidance in determining long-term operations costs and financing options for state-operated functions under the FFE Partnership Model.

Long-term Operational Costs. Aware that Marketplaces will receive no additional Establishment Grant funding from CCIIO after 2014, Arkansas included in its research a high-level estimate of Marketplace operational costs and revenues at a time when Arkansas was initially exploring a State-Based Marketplace in 2011. Using background research actuarial projections of average premium costs per month in 2014, and applying Arkansas’s current 2.5 percent premium fee to the estimated number of private plan enrollees in 2014, it was estimated that premium fees could be a source of financial sustainability of the Arkansas operated Marketplace. In November 2012, CMS/HHS/CCIIO provided guidance estimating that a 3.5 percent carrier fee will be imposed by the Federally-Facilitated Marketplace for FFM and SPM states. Furthermore, the Marketplace in Arkansas envisioned by Act 1500 will be allowed to assess fees as necessary to sustain its operations if such a State-Based Marketplace is created. The Marketplace Board will make recommendations starting October 1, 2014, and annually on each subsequent October 1. The act calls for the Board to issue the recommendations to the Arkansas Health Insurance Marketplace Legislative Oversight Committee “in the manner and format that the committee requires.” According to the act, assessments by the Marketplace Board may be offset by amounts received by the premium tax during the year the assessment is levied. At this point, we expect the AHCD to project operations costs for the SPM and the new Arkansas Health Insurance Marketplace Board will project developmental and operational costs for the potential SBM. Program Integration A significant portion of Arkansas’s Marketplace planning effort in 2011 was devoted to identifying opportunities to leverage existing functionality/processes for use in a State-Based Marketplace. The initial effort cast a broad net to contact state agencies as well as other stakeholder organizations to learn what features might be applicable to the Marketplace. Since then, the agencies and organizations studied have been consistently involved in Marketplace planning activities as participants in the Steering Committee and/or the various work groups. Many of these same entities are also working together on other statewide initiatives such as the state’s Health Information Exchange so were already thinking of opportunities to work together to leverage their resources. The Arkansas’s Program Integration Plan created as the result of these 201...

Long-term Operational Costs. The Commonwealth has developed an operational budget model for the KHBE, including ongoing cost and revenue options for 2014 and beyond. This model projects expenses and potential revenue from 2015 through 2019. The model is flexible, in that it allows adjustments to be made as Exchange development and implementation unfolds. Additional details on the long-term operational costs and sustainability options can be found in Appendix B: Sustainability Plan

Long-term Operational Costs. Taking Covered California to Scale‌ During Level 1 grant periods, Covered California engaged the Board, staff and senior managers in a detailed planning and budgeting process guided by its vision, mission and values. Long-term planning is embedded in the internal planning, budgeting and financial management processes of the Exchange. The process yielded the following guiding principles for Exchange financial management and planning:  Seek the highest value for the lowest cost. Because affordability is of paramount importance, all expenses should have maximum impact and the lowest possible ongoing expense to deliver the service or function needed.