Gov. Sean Parnell said Tuesday that Alaska will not develop its own health insurance exchange, but will instead rely on the federal government to do that.
Alaska had been one of the plaintiffs in a failed lawsuit attempting to block President Obama’s health care reform efforts, a key part of which was establishing locally run health insurance exchanges where Alaskans could go online to compare and purchase insurance.
Parnell had earlier rejected federal planning money to begin developing the state’s exchange, but held out the possibility that Alaska would still create its own exchange.
Tuesday, Parnell cited cost to the state in explaining his decision to let federal government develop Alaska’s exchange.
“It doesn’t make sense to spend Alaskans’ dollars to set up an exchange when so much uncertainty exists about how to implement it and how to gain federal approval,” Parnell said in a press release announcing the state action.
“Federally mandated programs should be paid for by federal dollars,” he said.
Sen. Bettye Davis, D-Anchorage, chair of the Senate Health, Education and Social Services Committee criticized the governor’s action Tuesday.
“I’m very sorry to hear him say that,” she said. “I think it’s a terrible mistake on our part.”
She said it would be better for Alaskans if Alaska had a locally operated exchange, or developed one together with other states in which it could have a say.
She called Parnell’s statement about the cost of the exchange a “virtual lie,” saying he turned down $1 million in planning money and that future money would be provided as well.
Parnell spokeswoman Sharon Leighow said “it would cost the state tens of millions of dollars” to do what was required to get an exchange running by 2014 if it were to do so on its own.
Leighow cited a page in the 95-page consultant’s report that said it would cost the state $35-$70 million to replace the state’s entire Medicaid eligibility system, a 1980’s era computer system used to determine eligibility for Medicaid, Denali KidCare, food stamps and other programs, so that it would work with the new exchange.
“The federal government will not pay 100 percent of this exchange,” she said.
The report, created for the state by the consultant firm “Public Consulting Group” provided a number of options for exchange development.
Elsewhere in the report it estimated the cost at $6 million to $7.5 million, with an estimated usage by 38,000 to 115,000 people. That cost estimate did not include possible revenues from the exchange.
While the consultants said the cheapest alternative for the state was to let the federal government handle the exchange, that’s also the option with the most uncertainty, it said, because it isn’t clear how the federal exchange would work with state programs.
The State Department of Health and Social Services said Tuesday that it would continue to try to have input in what is done in Alaska.
“Through our analytical review and deliberative process, we will continue to pursue the best solution for Alaska,” said Josh Applebee, deputy director for health care policy in a press release. “The report will be an integral part of the policy analysis in the coming days and weeks ahead.”
The consultants’ report also raised concerned about whether the exchange would be self-supporting by 2015, as required by federal law, given the cost of operation and the small Alaska operation.
Davis said that while the Legislature has in the past stepped in and accepted federal money rejected by a governor, that’s unlikely to happen in this case. She said she hoped the state would consider taking over and operating an exchange once the federal government has established it, however.
• Contact reporter Pat Forgey at 523-2250 or at patrick.forgey@juneauempire.com.
Comments (32)
Add commentFor someone that opposes federal intervention
Parnell is going out of his way to assure just that.
I used to be a server. When a customer would ask for something that was not on the menu I had a choice to make. Cooperate and do my best to meet the needs of my guest ~or~ just say no...we can't do that. I knew when I approached the cook he was going to get angry and abusive because, in his opinion, I was just pandering for a tip. He rarely thought of the actual guest that needed special prep or had an allergy. What he saw was me standing there begging for consideration. Sometimes it was easier to just say no to the guest without risking disfavor in the kitchen and make the cook look like the bad guy.
If he's not going to cooperate the least he can do is detail his own ideas to solve the problem. Complaining about the new law does little to help Alaskans who are struggling to find affordable options.
Parnell made it clear he does not support affordable healthcare and seems to be trying to be as difficult as possible. Plus...now he wants to defer responsibility to the feds and let them handle it. So which is it Parnell...who's going to be in control, Alaska or the Feds?
Sean Parnell does not want to
Sean Parnell does not want Alaskans to use our states money to help Alaskans find affordable health care insurance?
But he will spend millions of our states money fighting the Federal Government
and he will work to give billions of tax breaks to the oil industry but he does not want to spend money to help Alaskans. He will spend our money to pave a billion dollar road to resources to help industry but when it comes to helping people, he just cant seem to find the money.
Sean Parnell and his whole family have wonderful 100% state paid health care and a
pension, he uses our state money to fund his personal wars against the Federal Government
Can anyone imagine Governor Jay Hammond - ( a Republican) doing this?
2014 Sean boy is up for election and it is time to end his kingship, he has no right.
I think Alaskans need to sue him. He has no business being in our Governors house, because hes not working for us.
Thanks for not caring
about the people of Alaska. You keep going to bat for the oil companies and the cruise ships by cutting their taxes, which if let alone would pay for the insurance set up.
And as for the Sharon LeCow, a holdover from Palin's administration, do you really know the cost or are you just being Chicken Little.
"If there was no political
"If there was no political debate or controversy regarding health insurance exchanges, PCG would recommend the State consider initially implementing a state-federal partnership model with transition to a state-based exchange in 2016 or later," it said.
Read more here: http://www.adn.com/2012/07/17/2545556/parnell-says-no-to-state-run-healt...
Parnell is thinking about himself, this decision is about his political future, it is not about cost saving for Alaskans. Our state has the money to do this
Well, I'm convinced
It's the computers. That's why Governor Parnell can't afford it.
"Leighow cited a page in the 95-page consultant’s report that said it would cost the state $35-$70 million to replace the state’s entire Medicaid eligibility system, a 1980’s era computer system used to determine eligibility for Medicaid, Denali KidCare, food stamps and other programs, so that it would work with the new exchange."
It's outrageous that the federal government would demand that we use a computer system from this millennium. Our PC-XT's running DOS 3.2 have been just fine for 30 years, and they'll be fine for another 30 years.
Besides, how could improved information technology improve the delivery of healthcare? That's just crazy talk.
You go, Governor! Keep us in the 80's... the golden age of computer technology.
Mama. You asked "So which
Mama. You asked "So which is it Parnell...who's going to be in control, Alaska or the Feds?" Neither. BP.
Another political decision by Parnell to harm Alaska
The consultants said they would recommend a partnership if there were no politics involved: "If there was no political debate or controversy regarding health insurance exchanges, PCG would recommend the State consider initially implementing a state-federal partnership model with transition to a state-based exchange in 2016 or later."
Clearly then, the exchange is good for Alaskans, and Parnell is rejecting it for political reasons. He wants to continue the monopoly that a few insurance companies have, instead of letting us shop across state lines like we do for auto insurance and life insurance.
A year and a half ago, Parnell said state would "pursue lawful, market-based solutions of its own." When asked about that recently, he said that's "a discussion for another day." Meaning, apparently never- because he has done nothing in that time to produce a proposal.
So now we will have the federal government set up an exchange in Alaska because our governor is too busy reading talking points instead of "choosing respect" every day in every way for all Alaskans- including those who lack insurance.
Cuz he and all members of the Parnell-Treadwell regime have government-paid health insurance.
More federal control of Alaska
Just like he did with coastal zone management, Parnell is letting the federal government set up and operate an exchange for Alaska.
And what is he doing about all the marine debris coming adore? Nothing. Cuz he thinks that's is the federal government's responsibility somehow.
Continue using 30 year old
Continue using 30 year old computer system? I don’t know the truth about the computers but whats wrong in investing in the computers as needed infrastructure for people, its our future, latitude.
This is the problem with having lobbyists they will invest state money, city money in what they are lobbyists for. Parnell is not a people lobbyist. He works for industry.
a real Governor would be lobbyist for people.
Parnell
Why would anyone vote for this clone? He is just following the extreme GOP agenda.
Governor Parnell is right.
The court said that individuals can be required to buy insurance because it's a federal tax as allowed by the Constitution. The court also said that states still have rights and one of them is to opt out of federal requirements.
One reason this is best for Alaska is that the federal government is likely to continue to fully fund BIA health care but is backing out of Medicaid requiring larger and larger annual subsidies from states. The SOA now pays $1.3 billion for Medicaid, meeting federal mandates with state petroleum revenues. That is likely to grow, and therefore Governor Parnell is doing what is best for Alaskans by opting out when and where he can. At the same time, more and more people in rural Alaska, including veterans and long-time Alaska residents are qualifying for BIA health care (which is superior to Medicaid).
By the way, the state income tax we once had in Alaska would today net the state less than 1/3 of state Medicaid costs alone. Avoiding increases to formula-funded programs is wise of the governor.
Exactly like the people in Congress who voted for Obamacare, I haven't read the legislation. I have read countless news stories about it and I think states are wise to have as little to do with it as possible. Most Alaskans agree I believe and continue to support Governor Parnell as he pushes back against the federal government.
Oh Gdogs
Get up off your knees. He hasn't even unzipped yet.
Cangrejero:
You mean to tell us there are 2 of him out there?
too early to commit
1. does anyone really know how this federally-fed healthcare exchange is going to work when it comes online in 2014?
2. does it make sense to lean forward now when the state (and not just Alaska, but all states concerned) may be investing in something not compatible with the federals?
3. the ACA regulatory process is an exercise in ad-hockery for good reason: no one knows where the rounds will land when they leave the tube.
4. the prudent thing to do is wait until the feds get it all in one sock and then run with their lead.
Lat58 has good point - the computers are major consideration.
Asking the Federal Government to bring our Medicaid system
into the 21st century? I would be embarrassed to even admit our state's eligibility system is so outdated.
BTW, this Affordable Healthcare Act has always been the Fed's baby. Why does it surprise anyone the Fed should be footing the bill to integrate it? Just because we have an exchange does not mean the Feds will not be running the show.
Health Care
Message to Jumpstart:
He has no business being in our Governors house, because hes not working for us.
The Gov doesn't live in the Governors house, he lives in Anchorage with all of his commissioners.
I agree he is not working for us, affordable healthcare is what everyone needs. He is still upset the Supremes ruled against him.
its Political
The "Republican" Insurance Commissioner Mike Chaney (of Mississippi) had said proudly that other state insurance commissioners were starting to call his office for advice in developing an exchange. They even had a website already set up at www.onemissisisppi.com where consumers could go and shop for policies, across state lines, creating more competition to as a way to bring and keep costs down.
BUT due to pressure from the Tea Party & other conservatives this plan has been put on hold pending out come of the Nov. election folks. Because they are hoping that if Mitt Romney wins the election he will repeal the Afforable Care Act!
http://www.clarionledger.com/article/20120713/NEWS/207130335/Insurance-e...
this means we would go back to: no coverage for pre-exisiting conditions, no more coverage for preventive health care , increasing health care costs, young adults would be removed from parents policies etc....
Parnell
RECALL RECALL who knows what more he can and will do to screw up this state to please his cronies.
@Ratfishtim Interesting that
@Ratfishtim
Interesting that you left out the entire Parnell quote.
including looking at the potential for an exchange without the "shiny but poisonous apple" of federal dollars and mandates "that create federal dependency and control."
Why do you want to be dependent on the federal government? Why do you want them to control Alaska?
@Grendel
You say: " 4. the prudent thing to do is wait until the feds get it all in one sock and then run with their lead."
I do not agree. Alaska's people need access to affordable Healthcare now. Why aren't we working on the problem with respectful urgency instead of prioritzing tax cuts for big oil? You propose we sit back and wait while hard working people die?
And...
Please explain how you are so confident. I can't imagine that you are OK with costs and the possibility of a catastrophic illness in your own family. What happens if you become too expensive?
MamaT
Grendel already gets government-provided healthcare for life, so he's fine if your family does without.
@Mama T
Your valid contention and the crux of this article are two different things, Mama T. When I think ACA I cant help the image of clowns piling out of an overstuffed VW doing their best Chinese fire drill imitation. Dont hold your breath for anything meaningful in 2014. At the same time, Alaska is hamstrung to do ANYTHING unilaterally because healthcare at every state-level endeavour has now been Gordian dog-knotted to Obamacare. The price of inviting Big Govt in.
@Lat58
no I’m not, you presumptive twit.
No mystery why it was said.
Just the other day someone who was born and raised in the Railbelt said, "Risibly Juneau is just a bunch of Thespians and lesbians." I think I understand why an Alaskan could have that point of view. God willing, Governor Parnell will be the longest serving Alaska governor in state history. I don't know which has-been the D's will choose to run against him in 2014 but once again it will be a name we all forget within a few weeks after the election.
Whether the SOA or the FEDs set up an exchange...
Whether the SOA or the FEDs set up an exchange...it will still give Alaskan's access to affordable healthcare. That's the whole point. It will also give access to people who currently have pre-existing conditions and cannot qualify for major medical plans. I don't blame Parnell in not wanting to take on the financial risk of setting up an exchange that may or may not come to fruition. (insert comment here where you all say it's "the law" now - hey, even the SCOTUS said so).
The fact is there is still so much uncertainty surrounding the PPACA and exchange implementation that states would be foolish to "jump right in" and throw money at something that's future is still uncertain. Guess what? If it all comes together and makes sense for us to create our own exchange, we will! Wow.
"It doesn’t make sense to
"It doesn’t make sense to spend Alaskans’ dollars to set up an exchange when so much uncertainty exists about how to implement it and how to gain federal approval"
Sean Parnell
It sure makes sense to me to do this. This money came from our taxes, Alaskans have a right to this program. Another state will use this money.
Uncertainty exists, is he kidding, of course there is uncertainty.
Parnell and his other GOP conservative friends are playing political games while Alaskans get forced to pay more their Health Care.
Sean Parnell as Governor makes Alaskans pay more for just about everything.
repeat
repeat
If people are looking for a
If people are looking for a viable democrat to run against Sean the Pawn, I suggest Jake Metcalfe be enlisted. He's a great guy and very knowledgeable about all issues. Further, he will stand up for Alaska and Alaskans and never buckle under to special interest groups.
“Federally mandated programs
“Federally mandated programs should be paid for by federal dollars,” he said.
Parnell had earlier rejected federal planning money to begin developing the state’s exchange
Checkmate, Sean. You're a d@&che.