Lawmakers to eye federal money for health insurance exchange ...

By John Lyon
Arkansas News Bureau

LITTLE ROCK ? Legislative subcommittees this week will consider using federal funds to continue preparing for a federally mandated health insurance exchange in the state.

Resistance is likely from Republican legislators who oppose the federal Patient Protection and Affordable Care Act signed by President Obama in 2010, which mandates the creation of insurance exchanges in every state by 2014.

Today, the Review Subcommittee of the Legislative Council is scheduled to consider two proposed contracts with Boston-based Public Consulting Group, both of which would be funded entirely with federal grant money. One is a $298,000 contract for management planning and the other is a $278,850 contract to develop a program in which facilitators known as ?navigators? will help Arkansans use the exchange to obtain health insurance.

On Thursday, the Performance Evaluation and Expenditure Review, or PEER, Subcommittee is scheduled to consider a $7.7 million federal grant to fund various aspects of planning for the exchange.

State Sen. Bruce Holland, R-Greenwood, who serves on both subcommittees, said he is against spending anything to set up an exchange that may or may not be implemented, depending on the outcome of legal challenges to the federal health care overhaul.

?I am opposed to them trying to set up the exchanges when we don?t know what the verdict from the Supreme Court is going to be yet,? Holland said.

The U.S. Supreme Court heard oral arguments last week in challenges to the law but has not issued a ruling.

Holland acknowledged that the money in question would come from the federal government, not state coffers, but said that doesn?t matter.

?Why waste federal money or the state?s money?? he said.

State Insurance Commissioner Jay Bradford said that if the high court upholds the law, the federal government will create the exchange ? Arkansas declined to set up its own ? so the prudent thing to do is accept the federal money.

The $7.7 million grant would cover $2.4 million in technology costs that Arkansas will have to pay if it turns down the federal money, Bradford said.

?We can either receive the grant money that enables us to get ready to connect to the exchange or we can do it on Arkansas money,? he said.

Bradford also said passing on the grant could cause the state to miss deadlines for setting up Arkansas-based regulatory authority over the exchange.

?I have concerns about the affordable health care plan, but I know that whatever happens, Arkansans are better with the regulatory function being here rather than with the federal government,? he said.

And if the court strikes down the law?

?We?ll stop it right there,? he said.

The subcommittees will make recommendations to the Legislative Council, the legislative body that oversees state government during the interim between sessions. The council is scheduled to meet April 20.

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