Senate OKs contingent ban on a state exchange

Bid to cap private-option rolls clears panel

The state Senate Wednesday passed a bill barring the creation of a state-run health insurance exchange in Arkansas until the U.S. Supreme Court rules on a legal challenge to health insurance subsidies on federally run exchanges.

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Also, a Senate committee endorsed legislation aimed at capping enrollment in the state's private-option health insurance program, in which the state uses federal Medicaid dollars to purchase private insurance for some low-income Arkansans.

As well Wednesday, legislation that would allow school districts with fewer than 350 students to seek waivers from the requirement that they consolidate with another district cleared a Senate committee.

It took two votes before the health insurance exchange measure passed.

The 34-member Senate voted 25-0 to approve Senate Bill 343 by Sen. Jim Hendren, R-Sulphur Springs, which would prohibit a state-based health insurance exchange from being implemented until the U.S. Supreme Court rules in the King v. Burwell case, in which the legality of health insurance subsidies granted in states that use federally run exchanges is being challenged.

The Senate's initial 17-2 vote on the bill fell one vote short of the 18 required for approval, but senators voted to expunge the vote to clear the way for another.

If the U.S. Supreme Court allows health insurance subsidies under the federal Patient Protection and Affordable Care Act for a state-based insurance exchange, but not for an exchange operated by the federal government, then "implementation of an appropriate health insurance exchange for the state of Arkansas shall be determined by a future act of the General Assembly" under SB343.

But if the U.S. Supreme Court allows subsidies for both state-run and federally run exchanges, then the authority of the Arkansas Health Insurance Marketplace to implement a state-run exchange "shall not be affected" by SB343.

The state has a federally run exchange in a partnership between the state and federal government.

Hendren said his SB343 "establishes some middle ground" and that Gov. Asa Hutchinson is comfortable with it.

"If the Supreme Court dramatically changes the landscape and, particularly, if that results in a dramatic changing [of] the cost of insurance premium .... it is certainly appropriate that the Legislature have an opportunity to review what is the best path forward for Arkansas," he told senators.

The bill goes to the House of Representatives.

PRIVATE OPTION

The Senate Public Health, Welfare and Labor Committee voted 5-1 to recommend approval of SB312 by Alan Clark, R-Lonsdale, which is aimed at stopping enrollment in the state's private option Medicaid expansion program in December.

The Legislature already has authorized the use of federal funds for the program through fiscal 2016, which ends June 30, 2016, and Hutchinson has said he wants to end the program on Dec. 31, 2016. In the meantime, a legislative task force will recommend changes in the Medicaid program, including the private option.

Clark said his SB213 "doesn't do much, in that people tell me [the U.S. Department of Health and Human Services] will say no; and if they say no, it does nothing."

"I think that it's wrong that we sign people up in December of 2016 for insurance and then they have no insurance in January. If it's wrong in December, I think it would be wrong in November, October etc.," said Clark, who has voted to authorize funding for the program through June 30, 2016.

John Selig, director of the Arkansas Department of Human Services, said that even though the bill is asking for permission from the federal government, the language includes legislative intent to cap enrollment, which would be a violation of the state's waiver for the program with the federal government.

The legislation goes to the Senate.

PROSECUTORS

In a 33-0 vote, the Senate sent to the House SB177 by Sen. Jon Woods, R-Springdale, which would shift authority for setting the salaries of prosecutors from the Legislature to the Independent Citizens Commission. Created under Amendment 94 to the Arkansas Constitution, the commission has the power to raise salaries of the state's other elected officials.

Woods told senators that he accidentally left prosecutors off the list of state elected officials, whose salaries are determined by the commission under Amendment 94.

DEATH BENEFITS FOR FIREFIGHTERS

In a 34-0 vote, the Senate sent the governor HB1274 by Rep. Greg Leding, D-Fayetteville, which would provide death benefits of up to $150,000 to firefighters who die as a result of a type of cancer that is more prevalent among firefighters than the general population.

The designated beneficiaries of firefighters already are eligible for the benefits if firefighters are killed in the line of duty. Leding's bill would extend the benefits to firefighters who, after Jan. 1, 2012, succumb to certain cancers, which Leding said would average about one case per year.

WAIVER FROM CONSOLIDATION

The Senate Education Committee endorsed HB1263 by Rep. Bruce Cozart, R-Hot Springs, to allow school districts with fewer than 350 students to apply for a waiver from the state's requirement that they be consolidated with a nearby school district.

To apply for the waiver, the district would have to meet academic, fiscal and facility standards set by the state.

"It allows for continuing good schools," said Sen. Blake Johnson, R-Corning.

The bill goes to the Senate.

CONSTITUTIONAL CONVENTION

In a 54-32 vote, the House approved HB1006 by Rep. Nate Bell, R- Mena.

The legislation would enter Arkansas into the Balanced Budget Compact, a state-by-state agreement to call for a constitutional convention under Article V of the U.S. Constitution to require a balanced federal budget and place other checks on federal spending.

Wednesday's vote came a day after a similar resolution, House Joint Resolution 1003 by Rep. Bob Ballinger, R-Hindsville, fell six votes short of the 51 required for approval.

That resolution sought to apply for a convention under Article V of the U.S. Constitution to look for ways to control federal spending and what has been called federal government overreach and institute term limits on federal lawmakers.

Bell said the legislation falls in line with what the Founding Fathers had intended. He also said states needed to do something to address a growing federal deficit.

"George Mason among others, literally walked out of the Constitutional Convention when the Constitution was being developed, and said he would block ratification if there wasn't a method placed in the Constitution for the states to push back," he said.

The bill goes to the Senate.

Metro on 03/05/2015

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