It was all over our local news this past
week: Governor Jan Brewer came out with her decision to reject the federal
government’s offer to establish a state-run healthcare exchange. Many were
surprised by this decision, which appeared to be contrary to Republican
ideology that is centered on smaller federal government and bigger local
government. Others were greatly satisfied with her decision, such as the
conservative advocacy group the Goldwater Institute, which has long held
Brewer’s position.
While everyone has their own opinions about
the Affordable Care Act, commonly referred to as Obamacare, I would like to
avoid illustrating further bias here and instead lay out the arguments for and
against a state-run healthcare exchange.
Argument #1: Who has control?
Those opposing state-run healthcare exchanges
argue that state control is only an illusion. They believe that the federal
government will maintain major oversight and limit the state’s ability to adapt
the exchange for its unique patient population.
Obviously, those in favor of state-run exchanges believe that states really will control their programs. They believe that states will be able to design and develop their own unique programs and have a better handle on the health insurance market, which will ultimately drive down consumer prices and make healthcare more affordable and accessible for everyone.
Argument #2: Loopholes in the legislation
Many in opposition to the ACA are arguing
that the actual legal document only offers tax credits and subsidies to
state-run exchanges. This would leave the states with federal-run exchanges
without extra help for their constituents to buy affordable insurance. However,
this would also potentially create a loophole for states to then avoid the
federal mandate that all employers with over 50 employees provide health
insurance.
Advocates on the other side argue that while a literal interpretation of the document does appear to give benefits only to state-run exchanges, this was not the intention of those who drafted the legislation. Tax credits and subsidies are meant for everyone in the country to obtain more affordable health insurance. It is unclear if states will even be allowed to take up this kind of a lawsuit, and if anyone will really be up for trying to legally attack the ACA after its monumental upholding by the Supreme Court.
Argument #3: Who will pay?
Opponents of state-run exchanges, such as
Governor Brewer, contend that states would have to pay for their own exchanges,
while federal-run exchanges would be funded by the federal government. They
argue, why would we want to pay for something that the government is forcing us
to do and will have control over anyway?
Those in favor of state-run exchanges do not agree with this difference in funding sources. The federal government has already sent Arizona roughly $31 million in grants to assist in the planning of a possible state-run exchange. Furthermore, the federal government has promised to provide financial assistance to state-run exchanges until 2015. After that, states can be eligible for additional aid by meeting certain milestones regarding their exchange development.
These arguments present the tip of the
iceberg in the fiery debate across our country right now regarding healthcare
reform. The biggest questions in my mind at this point are: What will this mean
for our patients? How will things be different in Arizona with a federal-run
healthcare exchange? And how will this affect us as providers?
What do you think?