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S.C.’s Questionable Bid For A Private Insurance Exchange

From American Medical News:

Gov. Nikki Haley’s email influence flap sheds light on the struggle of states that don’t want to implement reform themselves but don’t want federal intervention.

By Doug Trapp

Jan. 9, 2012

A South Carolina state commission concluded in late 2011 that neither a state nor a federal health insurance exchange is feasible, mirroring the position pushed by South Carolina Gov. Nikki Haley before she created the commission. The panel instead called for a private insurance marketplace to be run by health plans and modeled on travel search engines.

State leaders around the nation are vigorously debating whether to implement state health insurance exchanges as outlined in the national health system reform law, or to allow a federal health exchange. Both would provide a marketplace for new individual and small group health insurance and coordinate Medicaid enrollment. The health reform law requires either a state or federal exchange to be implemented, although states later can take over a federal exchange.

But some state leaders are concerned that cooperating with the federal government could come with high costs. So far, 13 states have enacted legislation to create exchanges, according to the National Conference of State Legislatures.

Some states have sent mixed signals on the national reform law. A majority of states have accepted at least one federal grant to help pay for exploring the feasibility of a health insurance exchange, but several of these states at the same time are suing the federal government to block implementation of the law.

South Carolina is one of these states. In late 2010, the state’s Dept. of Insurance accepted a $1 million federal exchange planning grant — requested by then-Gov. Mark Sanford’s administration in August 2010 — while the state pursued a joint lawsuit to block the health reform law.

13 states have enacted laws to implement health insurance exchanges.

Haley, a first-term Republican governor, pushed to avoid implementing either a state or a federal health exchange. This would limit the appearance that her administration was allowing the Democratic-supported health reform law to move forward in her state, according to emails provided in December 2011 by the South Carolina Dept. of Health and Human Services to The Post and Courier of Charleston.

Haley issued an executive order on March 10, 2011, creating a committee to study the feasibility of health insurance exchanges. “The whole point of this commission should be to figure out how to opt out and how to avoid a federal takeover, NOT create a state exchange,” she wrote in a March 31, 2011, email to her staff and Anthony Keck, director of the South Carolina health department.

Haley appointed five of the 12 members of the exchange planning committee and designated three others to serve — including Keck — because of their positions in her administration. The remaining four members were appointed by the leaders of the South Carolina House and Senate. (more…)

2.5M Young Adults Gain Health Insurance Via Obamacare – Huzzah!

 From The Associated Press:

President Obama talks about the Affordable Care Act in Virginia earlier this week. He highlighted provisions, including requirements to let young adults stay on their parents’ insurance plans. (By Dennis Brack, Getty Images)

By RICARDO ALONSO-ZALDIVAR

December 14, 2011

Washington – The number of young adults lacking medical coverage has shrunk by 2.5 million since the new health care overhaul law took effect, according to a new analysis the Obama administration is to release Wednesday.

That drop is 2½ times as large as the drop indicated by previous government and private estimates from earlier this year, which showed about 1 million Americans ages 19-25 had gained coverage.

Administration officials said they now have more data. They say they’re also slicing the numbers more precisely than the government usually does, trying to pinpoint the impact of a popular provision in an otherwise politically divisive law.

Under the health overhaul, children can remain on their parents’ health insurance plans until they turn 26, and families have flocked to sign up young adults making the transition to work in a challenging economic environment. But the fate of President Barack Obama’s signature domestic accomplishment remains uncertain, with the Supreme Court scheduled to hear a constitutional challenge next year, and Republican presidential candidates vowing to repeal it.

“The increase in coverage among 19- to 25-year-olds can be directly attributed to the Affordable Care Act’s new dependent coverage provision,” said a draft report from the Health and Human Services Department. “Initial gains from this policy have continued to grow as … students graduate from high school and college.” (more…)

And Here We Thought Gov. Haley Was Acting In Good Faith

From The Post & Courier:

Haley dictated panel finding

Outcome ordered before health committee met

By Renee “Little Girl” Dudley

rdudley@postandcourier.com

Wednesday, December 14, 2011

Gov. Nikki Haley dictated the conclusions of a committee charged with deciding how the state should implement federal health care reform before the group ever held its first meeting, public documents show.

Now, some of those involved in the dozens of meetings are calling the entire planning process a sham that wasted their time and part of a $1 million federal grant.

In a March 31 email thread that included Haley, her top advisers and the committee member who eventually wrote the report, Haley wrote, “The whole point of this commission should be to figure out how to opt out and how to avoid a federal takeover, NOT create a state exchange,” which is eventually what happened.

A central part of the federal health care overhaul, an exchange is a marketplace where various insurance plans eventually will be sold.

The emails were released to the newspaper Friday afternoon in response to a Nov. 16 public records request to the S.C. Department of Health and Human Services.

The newspaper had made a nearly identical request of the governor’s office in May, but the office did not include the emails in its response.

The documents show a first-term Republican administration focused on public perception of its handling of the Democratic health care reform law. They also reveal the tight control Haley and her top aides exercise over other state agencies, requiring media inquiries to various state departments to pass through the governor’s office for inspection.

“Oh my God, we just threw $1 million away here,” said Frank Knapp, who participated in the meetings as president of the S.C. Small Business Chamber of Commerce. “This confirms this whole thing was an effort to justify the million-dollar grant, but the reality is they had no intention of even exploring whether the state should establish an exchange — which is exactly what the grant called for.” (more…)

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