Launch of State-Run Health Insurance Exchange Delayed in Arkansas

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A nonprofit created by the Arkansas legislature has decided to delay establishing a state-run health insurance exchange until 2016 to avoid a rush to build the technology system for it.

The Arkansas Health Insurance Marketplace Board had hoped to establish the marketplace next year to replace the one the federal government set up for the state, Arkansas Democrat-Gazette reported.

The 4-2 decision to delay the marketplace’s launch came after board members learned Wednesday that establishing it next year could require a rush to build the technology infrastructure needed to allow people to shop for coverage, apply for subsidies and enroll.

Setting up the exchange in 2016 means coverage would start in 2017.

The board said it will still try to set up a state-run exchange for small businesses next year. Christian Jones, a consultant with the Boston-based Public Consulting Group, told the board small-business exchanges are easier to set up than exchanges for individuals.

Board member Fred Bean noted the state’s federally run exchange already covers more than 211,000 people. Only about 60 people are enrolled in plans on the small-business exchange, established under the federal Small Business Health Options Program, according to an Arkansas Insurance Department spokesman.

“We do not have a successful, functioning SHOP program today,” Bean said.

Establishing the small-business exchange first “sends a message to the citizens of the state that we’re moving forward, we’re doing what we were asked to do, but we’re not doing it with a great deal of risk,” Bean said. “We’re doing it with control.”

After the meeting, Arkansas Gov. Mike Beebe’s spokesman said the governor would like to see the transition to a state-run exchange happen sooner, but does not object to the board’s vote.

“A transition is going to take some time,” spokesman Matt DeCample said. “If that’s what the board thinks is best, then that’s what we’ll do.”