Study: Ohio IT cost for insurance exchange could run $20m to $63m

A new study released this week by the Ohio Department of Insurance projects that Ohio’s startup technology costs for a health insurance exchange would be about $20 million if the exchange is run by the federal government and as much as $63 million if it is a state-run exchange (Source: “Health insurance exchange’s IT tab projected at up to $63M,” (Columbus) Business First, Oct. 6, 2011).

ODI contracted with consulting firm KPMP LLP to conduct the study.

While the report lays out a number of options for the state, it said that if Ohio does opt for a state-run exchange, it would need to begin planning immediately. In fact, the study concluded that designing and building the technological infrastructure for a state-run exchange would take four years, meaning the state would have to apply for a federal extension to phase in the technology after the Jan. 1, 2014 date that exchanges must be up and running.