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On eve of PPACA exchange deadline, many governors still balk

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By Bloomberg News Service
November 15, 2012

(Bloomberg) — Republican governors are balking at adopting key provisions of the Patient Protection and Affordable Care Act, a week after Mitt Romney’s defeat dashed their hopes of scuttling the health care reform law.

The state leaders, at a meeting of the Republican Governors Association in Las Vegas, said they’re concerned over costs and regulatory burdens PPACA may impose. Opponents unsuccessfully challenged the law in court and many states delayed implementing it, hoping Romney — who called for the law’s repeal — would win the Nov. 6 presidential election.

“It’s a bad piece of legislation,” Louisiana Gov. Bobby Jindal said at a news conference in Las Vegas Wednesday. “It’s going to have a lot of unintended consequences.”

Obama’s re-election lifted uncertainty over the law, and states now are facing decisions about how to move forward with the most sweeping changes to the nation’s health care system since 1965.

States must decide whether to create exchanges in which consumers can buy subsidized insurance policies beginning in 2014, or have the federal government do it for them. They face a Friday deadline to tell the federal government whether they are planning to create their own exchanges. Wednesday, the Republican Governors Association sent a letter to the Obama administration, asking for more time.

Only 13 states, none led by Republicans, committed before the election to build their own exchanges.

Maine Gov. Paul LePage said he has no plans to set up a state exchange where residents who don’t receive health insurance through their employer can shop for subsidized plans. He plans to cede that power to the federal government.

“I’m not lifting a finger,” he said in an interview. “We’re not going to get involved. We’re going to let Mr. Obama do a federal exchange. It’s his bill.”

5 Comments

Posted by: David F | November 15, 2012 5:12 PM

States that decide not to create an exchange are the smart ones. Let Obama do his thing and take the responsibility for the nightmare he created. Or better yet, outsource the administration of the "exchange" to a private entity that already has one set up: Travelocity.

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Posted by: HR Memphis | November 15, 2012 3:39 PM

PPACA states that if the states do not set up a health insurance exchange the states will then use the Federal Government's exchange. It is not a GOP or Democratic politically maneuver, but a cost concern. It is conservatively estimated that it will cost the states several hundred million dollars to create an exchange and then millions to maintain it a year. Most states do not have the money to build and maintain this very cumbersome task. Not to mention, the major headache it will be implementing it, since most the rules and regulations have not yet be finalized.

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Posted by: Gary I | November 15, 2012 2:53 PM

"continued failure to follow the law"?It is in the law that the Feds will set-up the exchanges if the States cannot or will not set them up by 2014. So what exact part of the law are they not following?

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Posted by: msmox | November 15, 2012 2:27 PM

Good for the Republican governors! Someone needs to stand on the principles of individual rights since Obamacare ignores those rights. Obamacare is a horrible law and should be repealed; however, until it is everyone should do their part to fight it. Obamacare explicitly forbids subsidies for Federal exchanges so if a state exchange is not set up, subsidies won't be available to anyone. Fascism has never worked and will not do so now.

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Posted by: David K | November 15, 2012 1:21 PM

Sounds like some of the GOP governors are ceding state insurance oversight. Good, I don't think that many states do a good job in any case. I love the GOP's continued obstruction and continued failure to follow the law. I hope it backfires on all of them.

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