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Five Arguments Against A State Insurance Exchange

Under the Affordable Care Act, Arkansas must either establish a state health insurance exchange or allow the federal government to do so: each exchange will accept and process citizen enrollment in health insurance plans. Two-thirds of the states have declined to establish state exchanges, thus leaving exchange creation to the federal government; given the 33-state rejection of health care exchanges, it is a bit of a mystery why HB1508 – which establishes a state exchange – passed the House and is on the Senate floor today. The Beebe administration has worked tirelessly to establish a state exchange for years; following are five reasons why the state Senate should decline Governor Beebe’s invitation to create a new insurance bureaucracy.

1. A state exchange will not increase local policymakers' control over insurance providers or create better customer service.

2. A state exchange will burden state taxpayers and state budgeters. 

3. A state exchange will load political accountability onto state officials for federal Obamacare problems.

To read the other two reasons and an in-depth analysis, read our full paper.

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