State public option plans keep hitting obstacles

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State public option plans keep hitting obstacles
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State efforts to control health costs through public options are stalling in the face of resistance from providers and lackluster enrollment.

Nevada, New Mexico, Minnesota and Connecticut are among the other states either weighing bills to create public options or nudging similar plans forward.

A key will be whether they can attract more consumers and save money through partnerships with insurers or whether they'll have to force the carriers to participate, a recenthealth plans that offer a defined set of services at a discounted price to promote access and affordability.

With big geographic gaps in plan availability, the state put more requirements on hospitals to contract with plans. But only 27,000 residentsforcing insurers and health providers that participate in other state health programs to also participate in the public option.by launching a public option this winter and requiring insurers to offer three tiers of service in all counties where they offer individual or small-employer plans.

About 35,000 residents enrolled so far. Next year, the Division of Insurance will begin holding insurance companies accountable to meeting premium reduction targets.the lion's share of its members won't meet those targets, and that insurance regulators set too generous benefits as the standard package, driving up premiums.

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