Republicans have created a bill that, if passed into law, would cut some of the funding that States would receive from the federal government. The funds being cut would be the ones that were specifically designated for States to use to set up their health insurance exchanges. This may bring about unexpected changes.
This week, a bill created by Republicans in the House of Representatives will be voted on. If it passes, it will become a law that would eliminate the federal grant money that States would be using to set up their individual health insurance exchanges. These grants are extremely important for States that are strapped for cash right now.
A big part of the health reform depends on the creation of the health insurance exchanges. These exchanges are intended to be a resource that consumers will be able to use in order to find affordable health insurance. In 2014, all Americans will be required to purchase health insurance. Those who don’t have health insurance at that time will be fined. Therefore, one could say that it is in the best interest of consumers that the health insurance exchanges become available.
Not every State is currently working on creating their health insurance exchanges right now. Some States are still in the process of figuring out the details about how everything will work. They are having meetings between lawmakers, insurers, and people who are knowledgable about health care. Other States have flat out refused to create a health insurance exchange, at all. There are a few States who began working on the creation of their exchanges shortly after the Affordable Care Act was signed. Overall, things are kind of up in the air at the moment.
Some Republican lawmakers feel that the grant money for the exchanges comes with too many stipulations and rules. They feel that States who accept the grant money would lose the freedom to make their own decisions about exactly how the exchanges would be created, what they would include, and how they would be run.
Ironically, the lack of funding doesn’t mean that the health insurance exchanges will not exist. If a State cannot afford to create their health insurance exchange, or if they simply choose not to make one, the federal government will put one together for them. The bill would end the funding, but it will not take away the right of the federal government to run an exchange in States that don’t set up their own.
Image by Daniel Borman on Flickr