Feds Moving on Health Care Law, Gov. Scott Not Budging

Health care exchanges to be set up by 2014, state agencies not in a rush
By: Gray Rohrer | Posted: July 12, 2011 3:55 AM

Federal regulators charged with implementing the Affordable Care Act stated Monday they are trying to work with states to start up the law’s health care "exchanges" -- exchanges are one-stop consumer markets for buying insurance.

But they said they will install a federal health care exchange if a state refuses to set one up on its own.

The news carries weight for Florida, because Gov. Rick Scott, who first came onto the political scene as a staunch opponent of the federal overhaul of health care signed into law by President Barack Obama last year, is not moving from his stance that state agencies should not begin implementing the law.

The health care exchanges -- scheduled to be in place by January 2014 -- are touted as a more transparent way for individuals to compare health insurance policies’ coverage and prices online, over the phone or in person. They can be set up by the states themselves, done locally or regionally, or operated by a nonprofit, or can be done in partnership with the federal government.

States will be in charge of selecting plans in the exchanges, but they must meet minimum coverage and quality standards set forth by the federal Health and Human Services agency. Those standards are scheduled to be released later this year.

HHS officials said the guidelines for the exchanges give states enough flexibility to adjust the federal exchanges to their unique circumstances, but the final say on what plans qualify will remain in federal hands.

“In terms of setting up an exchange and meeting minimum standards, those would still apply,” said Steve Larsen, HHS director of the Center for Consumer Information and Insurance Oversight.

The proposals and claims of flexibility for states did not thaw Scott’s position on the law, or its implementation.

“As proposals, we are not about to change our policy to start implementing Obamacare,” Scott spokesperson Lane Wright said.

Under the law, states must get approval from HHS for their exchange plan by January 2013, but a conditional approval can be given if a state is on track to be ready to implement its exchange plan by January 2014.

Larsen held out hope that states would get on board and begin to lay the groundwork for the exchanges; he stated the federal government would be ready to step in and impose an exchange system if a state did not do so.

“If a state on January 2013 has not received approval or conditional approval, then we would be able to have an exchange in place by 2014,” Larsen said.

Yet most states are trying to avoid the federally imposed exchanges.

Two federal judges have declared the Affordable Care Act’s individual mandate, which imposes a tax or penalty on individuals who do not obtain health insurance, unconstitutional. One of those rulings came from a Pensacola judge in a lawsuit filed by Florida and 25 other states against the health care law. The Atlanta 11th Circuit Court of Appeals heard oral arguments in the case last month but has yet to issue a decision. In a separate lawsuit, the 6th Circuit Court of Appeals upheld the individual mandate as constitutional last month.

The issue will likely be settled by the U.S. Supreme Court, but in the interim, states opposed to the Affordable Care Act are caught between readying themselves for it, or counting on its cancellation by the courts.

“All we know is that a (federal judge) in Florida has ruled it unconstitutional, so we’re not going to be implementing it,” Wright said.

Scott stated in February, after the ruling in the Florida case, that he did not anticipate the law being upheld and he would not move to implement it until its legal fate was settled. He insisted that Florida would be ready if the law was deemed constitutional, despite the lack of preparation.

“I personally always believed it was going to be repealed. We are not going to spend a lot of time and money with regard to trying to get ready to implement it,” Scott said at the time.


Reach Gray Rohrer at or at (850) 727-0859.

Comments (4)

12:48PM JUL 12TH 2011
Scott is an unmitigated disaster and it will take this state a generation or more to recover from his administration. Forget about anything beneficial "by the people, for the people and of the people" while he's in office; he's a petty tool of extreme partisan interests.
9:09PM JUL 16TH 2011
Yeah, those "extreme partisan interests" will getcha every time! When you don't have a reasonable comment, just throw in an ad-hominem attack and the big, bad Republican will go away... 1)Define "extreme" 2) How is anyone concerned about the political process anything BUT "partisan"? 3) Oddly enough, "the people" elected Scott, "they" must have thought well enough of him... Quit being a bomb-thrower and start being a thought-thinker...
10:46AM JUL 12TH 2011
Obamacare will not stand, why spend money starting to implement it? In a little more than a year it's going out the window with B.O. and a large number of the people who crammed it down our throats.
8:16AM JUL 12TH 2011
"States will be in charge of selecting plans in the exchanges" In Forida's case that's scary; wonder which plans will be included. Scott's office won't be ready however, and will have to spend more money to get it implemented in time. As usual, he's costing us more and delivering less.

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