Health Overhaul Insurance Bill Advances in Arkansas

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Arkansas lawmakers moved ahead on a plan to enable the state insurance department to create a framework for a health insurance exchange, which backers said would allow Arkansas to retain control of a network that eventually would be required under the federal health care overhaul.

Opponents, who had defeated the plan in the House Insurance and Commerce Committee once before, argued the state has to time wait to create an exchange and still meet a January 2013 federal deadline to have the framework in place.

The committee passed the bill, sponsored by Democratic Rep. Fred Allen of Little Rock, on an 11-7 party line vote Monday. It now heads to the full House. Allen noted the legislation had been amended about 10 times to address various concerns and that it specifies the exchange would be dissolved if the federal health care law is found unconstitutional.

Insurance Commissioner Jay Bradford said having the state create its own exchange would ensure the program would be responsive to the needs of Arkansas residents. Otherwise, Bradford said, the federal government would create the exchange and run it out of Washington, D.C., if the state did not meet the deadline.

“We want the regulatory function for Arkansas here in Arkansas,” Bradford said. “The federal government does not hesitate to step forward and regulate the health care for Arkansas. Frankly, the conservatives in the United States Congress insisted that the states have the option to regulate the agents … the insurance companies, and the conduct of the agents and the conduct of the insurance companies. That’s what the conservatives wanted to ensure happened.”

Gov. Mike Beebe, a Democrat who supports formation of the plan, said last week that he found it “ironic” Republicans were repelled by legislation that would enable the state to have control over part of the federal health overhaul.

Republican Reps. Jon Woods of Springdale and Mark Biviano of Searcy said he supported the idea of a health exchange, but objected to it being tied to President Barack Obama’s health care overhaul plan.

Bradford acknowledged the federal government would fund the creation of the public-private exchange, which is to be ready for operation in January 2014, but said creating the framework now would give the state more control over how it’s ultimately run. Rep. Buddy Lovell, D-Marked Tree, said even 15 states that have sued the federal government to block the health care law have passed similar bills to allow for greater control over any insurance exchange that is created.

Small business owner Ginger Johnson complained the exchange would be a burden on small businesses.

“We are sinking in taxes (and) paperwork,” she said.

Bradford said having the exchange in place would enable employees to visit a website and pick the health insurance policy they want, sparing employers some red tape. The workers also would be in a much larger pool, which could mean savings for business owners, he argued.