By Paul Davenport, Associated Press
PHOENIX (AP) – Arizona Gov. Jan Brewer has decided against creating a state-run health insurance exchange to implement a key part of President Barack Obama’s federal health care law.
Brewer’s decision announced Wednesday means the federal government will set up an online marketplace for the state, offering subsidized private health coverage to the middle class. The governor reiterated her unwavering opposition to the health care overhaul, and said there were too many costs and questions associated with a state-run 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,” she said in a statement.
Brewer joins other Republican governors in such states as Texas and Maine who have balked at creating state-run exchanges, although others in Nevada and New Mexico have opted to proceed. She sent a federal official a one-page letter conveying her decision.
Her announcement preceded a Dec. 14 deadline for states to declare whether they’d run their own exchanges.
A decision to create an exchange would have been subject to approval by the Republican-led state Legislature. Though the Nov. 6 election results reduced the size of Republicans’ majorities in the state House and Senate, a Brewer push to create a state-run exchange would have faced a fight from GOP lawmakers who oppose the law.
An alliance of hospitals, insurance companies and business groups wanted Arizona to have a state-run exchange, arguing that it would increase coverage while giving the state flexibility in designing a program to its liking.
Conservative advocacy groups such as the Goldwater Institute stood in opposition. They said Arizona shouldn’t help implement a law that could foist new expenses on the state and raise health insurance prices for residents.