PHOENIX – Today, Governor Jan
Brewer notified the Obama administration that the State of Arizona will not
pursue the creation of a state-based Health Exchange. Instead, Arizona will
participate in a federally-operated Exchange, according to the guidelines of the
Patient Protection and Affordable Care Act.
“Today, I notified the U.S.
Department of Health and Human Services (HHS) that the State of Arizona will not
create a state-based Health Exchange. This decision comes following an extensive
research and outreach process during which my team of health advisors conducted
public hearings and met with HHS, patient advocates and representatives of
Arizona hospitals, health providers, insurers, tribal groups and other members
of the health care community.
“This has been one of the
more difficult decisions of my career in public service. My opposition to the
Affordable Care Act (ACA) is unwavering, as is my belief that it should be
repealed and replaced with legislation that achieves its stated goals: to
improve access to quality, affordable health care in this country. But I am also
aware that the ACA remains the law of the land. Likewise, though I am a steady
advocate of local control, I have come to the conclusion that the State of
Arizona would wield little actual authority over its ‘state’ Exchange. The
federal government would maintain oversight and control over virtually every
aspect of our Exchange, limiting our ability to meet the unique needs of
Arizonans and the Arizona insurance market.
“A state Exchange would be
costly. Though the federal government has pledged to pay nearly all startup
costs, states that form their own health exchanges are on the hook for
operational expenses beginning in 2015. Those costs could total $27 million to
$40 million annually for the State of Arizona, according to a recent study
conducted by Mercer. Of course, these expenses would be passed along in the form
of fees resulting in higher health premiums for Arizona families and small
businesses. This would be an additional financial burden at a time when so many
Arizonans are still struggling.
“Lastly, there simply remains
too much we don’t know about how a State-based Exchange would function and its
ultimate cost to taxpayers. Without clear federal guidance and instruction, I
cannot in good conscience commit the taxpayers of my state to this costly
endeavor.
“The State of Arizona has a
long history of health care innovation. Our Medicaid program, AHCCCS, has been a
national model of cost-efficient care for three decades, and our pioneering
pursuit of integrated health is designed to improve the quality of life for
Arizonans living with serious mental illness. In this proud tradition, I remain
committed to working with legislators to enact State reforms that improve care
and reduce costs for Arizona families, while maintaining a vibrant and
competitive health care marketplace.”
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