Arkansas House Passes Budget with Insurance Department Funding

The Arkansas House, on its fourth try, passed a $4.6 billion state budget that includes operating funds for the state insurance department.

The Senate had already passed a similar budget bill. The Legislature is scheduled to end its session today.

The state budget had been held up by House Republicans who opposed the insurance commissioner’s plan to create a state-controlled health insurance exchange, one of the features of the new federal healthcare law that many of them oppose. The state needs legislative approval to utilize a $1 million federal grant to set up the new exchange.

Gov. Mike Beebe had warned Wednesday that the Arkansas Insurance Department could be left without a budget because of Republican opposition to the healthcare reforms.

Democrats have questioned why Republicans weren’t embracing the plan to create the insurance exchange because it is an element of the federal health care overhaul that enables states to retain a degree of control. If the state misses a January 2013 deadline to create the framework for the exchange, the federal government will create the exchange and run it from Washington.

Republicans have said the state does not need to rush to create the exchange when it has another year to develop it.

But Insurance Commissioner Jay Bradford told lawmakers that the state has to begin work in order to meet federal benchmarks or it could lose control of the exchange.

The governor also expressed frustration because 20 states with Republican leadership are working toward creating their own exchanges.

“They (Arkansas Republicans) claim they don’t want Washington federal health care,” Beebe said. “What we’re trying to do is stop Washington federal health care. You can’t be any plainer than that.”

Republican Rep. Charlie Collins of Fayetteville opposes the health overhaul, but said on the House floor that the insurance department budget should be passed.

“I can’t stand ‘Obamacare’ as much as everybody else in here that is against it,” Collins said. “This is not going to stop it. There are other things we can continue to do. Holding up the government is not the right thing for the people of Arkansas, despite my personal preferences.”

The Associated Press contributed to this report.

Topics Mergers & Acquisitions Washington Arkansas