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From a general perspective, the health insurance marketplace is going to revolutionize health insurance. But it is going to be a tough path, especially when you consider the lack of general knowledge of the exchanges and the abundance of variables. At the same time, the outlook toward these marketplaces is generally positive. But, a closer look at Florida reveals that the state could be heading toward disruption.

Florida chose not to implement its own exchange and is relying to the Federally Facilitated Marketplace (FFM). The main issue in Florida is that the top health insurance organizations and some businesses have not bought in to the marketplace. Why is this happening? Here are a few reasons why all is not well in Florida health insurance market.

•    Most businesses feel that government has been slow at implementing and spreading information about FFM.  Having more of an impact, though, is that the Affordable Care Act remains a lightning rod for politicians and residents.

•    Not all health plans are going to participate in the Florida market. The larger plans are taking a “wait and see” approach to the marketplaces, preferring to see how the first year plays out.

•    The individual health insurance market is very competitive, and most plans feel that it is, initially,  going to be high-risk as older and less healthy individuals are going to be more prone to enroll in the exchange.

•    Most players expect increased competition on the health exchange and not many factors to justify competing in that environment.

Most of these reasons are prompting major plans in the market to rethink their strategy. In this situation, Floridians will not realize the full value of having health insurance marketplaces due to lack of participants.

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