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“An Unhealthy Dose Of Politics”: Gov Matt Bevin Is Letting His Dislike For The President Blind Him To The Success Of Kynect

The New York Times reports that Kentucky Gov. Matt Bevin has informed the Obama administration that he intends to shut down his state’s health insurance exchange. The move will mean that Kentuckians will have to seek health insurance from the federal exchange. The newly-elected Republican governor may also make changes to the state’s Medicaid expansion program. Both moves would fulfill promises that Bevin made on the campaign trail last year.

Health insurance exchanges were established by the Affordable Care Act to serve as a marketplace for individuals who are not covered by the employer-based market. While the law envisioned that these exchanges would be run entirely by the states, in practice there are only 13 state-based exchanges, including the one in Washington, D.C. The rest of the states rely, either in part or entirely, on the federal exchange, Healthcare.gov.

Of the states that chose to run their own exchanges, Kentucky was doing well. The state’s exchange, known as Kynect, has in fact been lauded as one of Obamacare’s best success stories. The Washington Post reports that since it launched, Kynect has cut Kentucky’s uninsured rate in half. While some other states have struggled in their efforts to establish their own state-based exchange, Emily Beauregard, executive director of Kentucky Voices for Health, told the New York Times that “Kynect is working perfectly, and it’s been good for Kentucky.”

If the exchange had not been successful in reducing the state’s uninsured, Bevin’s plan would be justified. However, given Kynect’s effectiveness, Bevin’s plan to dismantle it makes little sense. His decision is driven purely by political motives and not with the welfare of his constituents in mind. Although the Obama administration has promised a “seamless” transition to Healthcare.gov for those who receive coverage through Kynect, there are still bound to be disruptions in coverage. For some, that disruption in coverage could be devastating.

Taking Kynect apart will also cost the state money. According to the Times, the previous governor’s administration estimated it will cost “at least $23 million” to shut it down. There’s also the question of unused grant money, approximately $57 million, which Kentucky might have to repay to the federal government. In contrast, leaving the exchange in place would provide consistency and predictability for its customers and allow the state to continue building on Kynect’s success, perhaps even lowering the state’s uninsured numbers further.

Unfortunately, Bevin is letting his dislike for the president blind him to the success of Kynect and its benefit to his constituents. Kynect has worked well for Kentucky, and the new governor should keep it in place.

By: Cary Gibson, Thomas Jefferson Street Blig, U. S. News and World Report, January 15, 2016

January 16, 2016 - Posted by raemd95 | Affordable Care Act, KyNect, Matt Bevin | Emily Beauregard, Federal Exchanges, Health Exchanges, Kentucky, Medicaid Expansion, ObamaCare, uninsured