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ST THOMAS, USVI -- Governor John de Jongh has hired two companies to conduct studies that will help him decide whether the US Virgin Islands should work toward implementing a health insurance exchange in line with President Obama's reform of the nation's health care system.

The companies will analyze the insurance market in the territory and the technological requirements of establishing an insurance exchange, aiding the governor's Health Reform Task Force in determining the feasibility of an exchange in the territory.

Under President Obama's Affordable Care Act, the territory has the option of using federal assistance to create an exchange, or putting the money toward an expansion of its Medicaid program.

“Establishing a health insurance exchange here in the Virgin Islands is an exciting possibility, one that could be a significant step toward our goal of helping all in the territory find affordable health insurance. The exchange would be a one-stop shop where Virgin Islanders could find a plan that is right for them, their families or their employees, and seek government assistance if necessary” de Jongh said.

It remains unclear, however, if an exchange is right for the territory, he cautioned.

“This would be a big project, and before we commit to it my Health Reform Task Force needs more information so as to make the decision that will benefit the greatest number of people in the territory. With these two studies, I am confident whatever decision I make will be well-informed,” de Jongh said.

A health insurance exchange would help uninsured people and small businesses purchase private health insurance plans by creating a more organized and competitive market for consumers. The exchange would function as an online marketplace where US Virgin Islanders could shop for different plans, and access government subsidies to assist their purchases.

NewWave Telecom and Technologies will perform an I-T gap analysis to determine the upgrades to technical infrastructure needed to successfully implement the exchange. Value Advisory Group will analyze the territory's insurance market to assess the benefits of such an exchange in the US Virgin Islands.

In March, the Office of the Governor received a federal grant to study whether the project could be financially sustained, US Virgin Islanders as well as health insurance companies would be interested in participating, and the exchange would address the needs of the territory's population.

The Virgin US Islands and other insular territories originally were excluded from the option of setting up an exchange, but the law was modified after de Jongh and his fellow territorial governors wrote a letter to Health and Human Services Secretary Kathleen Sebelius urging expansion of that provision of the Affordable Care Act to the territories.

De Jongh will decide by October of 2013 if the territory will pursue up to $30 million in federal funding to create the exchange and assist residents in using it to find and purchase private insurance plans, or if the funding will be traded for Medicaid expansion.

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