Committee Calls for Oklahoma Insurance Exchange

By Katie Fretland | February 24, 2012

A legislative committee has recommended that Oklahoma create its own health insurance exchange so the federal government doesn’t establish one for it instead.

Rep. Glen Mulready, R-Tulsa, said the exchange is a proactive choice, though he said he is hopeful the federal health care law will be overturned through litigation or the election of a different president.

Mulready told The Associated Press he does not believe in the federal government’s ability to impose an exchange cost effectively, and a state-based plan would give Oklahoma more control to decide the role of agents and brokers, as well as inviting more carriers and competition.

Individuals would have the option of enrolling in a state exchange and small businesses could enroll employees.

“There is no doubt that a state-based exchange still falls under the umbrella of federal law,” he said.

The federal law mandates insurance exchanges. If Oklahoma fails to set one up, the federal government will establish one next year.

The recommendation was included in a report by the Joint Committee on Federal Health Care Law. Republicans outnumber Democrats on the panel.

Oklahoma was to receive $54 million in federal funds to set up an exchange, but after resistance last year from tea party groups opposing the health care law, Gov. Mary Fallin rejected the money.

Sen. Sean Burrage, a Democrat on the committee, said in a statement that Fallin should have taken the money, and that establishing an exchange in 10 months is a “huge undertaking.”

Amanda Teegarden, executive director of the Oklahomans for Sovereignty and Free Enterprise, said she hopes legislators will strongly consider rejecting the implementation of a state-based exchange.

“OK-SAFE is disappointed in the findings of the joint legislative committee. However, we are not surprised based on the Legislature’s past efforts to implement health care reform in this state to bring the state in alignment with federal initiatives,” she said.

Fred Morgan, spokesman for Oklahomans for Free Market Health Solutions Coalition and the CEO of the State Chamber, said in a statement that he supports a state-based exchange.

“To protect valued relationships patients have with their doctors and insurance agents, as well as to keep the free market involved in Oklahoma’s health care, we need the type of legislation recommended by this committee,” Morgan said.

Associated Press writer Sean Murphy contributed to this report.

Topics Oklahoma

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