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Kentucky Governor Tells Feds He Will Dismantle State's Insurance Exchange

Kentucky Gov. Matt Bevin is following through on a promise he made to drop the state-run health insurance exchange in favor of the federal HealthCare.gov.
Timothy D. Easley
/
AP
Kentucky Gov. Matt Bevin is following through on a promise he made to drop the state-run health insurance exchange in favor of the federal HealthCare.gov.

Republican Gov. Matt Bevin has notified the federal government that Kentucky will dismantle its state health insurance exchange, Kynect.

The move will direct Kentuckians seeking health insurance under the Affordable Care Act, also known as Obamacare, to use the federal health insurance site, HealthCare.gov.

More than 500,000 people have gotten health insurance through Kynect.

Bevin spokeswoman Jessica Ditto called the program a "redundancy," in a statement from the governor's office. "The transition will have no impact on Kentuckians' ability to obtain or continue health care coverage for the 2016 plan year."

Under the state-managed exchange, Kentucky charges a 1 percent assessment on all insurance premiums to fund the program. Once Kynect is eliminated, the state's 1 percent charge will be eliminated, but plans acquired through the federal exchange will be charged a 3.5 percent assessment.

Since 2014, health care coverage has been required in the U.S. Kentucky is one of 17 states that has a state-based health insurance exchange.

The end of Kynect is paired with the governor's intention to change the state's approach to Medicaid, which provides health insurance to low-income residents. Bevin promised to take both actions during and soon after last year's gubernatorial campaign.

Late last year, Bevin announced that he would by 2017 "transform" the state's expanded Medicaid system into a model similar to Indiana's, which still provides health insurance for those whose household income is up to 138 percent of the federal poverty level.

Under a federal waiver, Indiana offers a complex variation on traditional Medicaid coverage. Among other things, the state's plan offers less generous benefits to newly eligible people at or below the poverty line who don't pay Medicaid premiums, according to an analysis by the Kaiser Family Foundation. People who do pay premiums get a richer package.

More than 400,000 Kentuckians have gotten health insurance through the state's expanded Medicaid program.

Under Bevin's predecessor, Democrat Steve Beshear, Kynect also included a marketing campaign and funded workers to aid people in signing up for benefits. Bevin, a Republican who took office last month, has already ended marketing for Kynect.

According to a Gallup Poll, Kentucky's uninsured rate dropped from 20.4 percent to 9 percent during the first two years of implementation.

The repeal of Kynect is a "big step backward," said Jason Bailey, executive director of the think tank Kentucky Center for Economic Policy. "We should be building on things like Kynect that are working so we can create a stronger Kentucky, not taking them apart."

Beshear's administration has said it would cost at least $23 million to dismantle the system.

Copyright 2016 Louisville Public Media

Ryland is the state capitol reporter for the Kentucky Public Radio Network, a group of public radio stations including WKU Public Radio. A native of Lexington, Ryland has covered politics and state government for NPR member stations KWBU in Waco and KUT in Austin.

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SOMOS CONNECTICUT is an initiative from Connecticut Public, the state’s local NPR and PBS station, to elevate Latino stories and expand programming that uplifts and informs our Latino communities. Visit CTPublic.org/latino for more stories and resources. For updates, sign up for the SOMOS CONNECTICUT newsletter at ctpublic.org/newsletters.

SOMOS CONNECTICUT es una iniciativa de Connecticut Public, la emisora local de NPR y PBS del estado, que busca elevar nuestras historias latinas y expandir programación que alza y informa nuestras comunidades latinas locales. Visita CTPublic.org/latino para más reportajes y recursos. Para noticias, suscríbase a nuestro boletín informativo en ctpublic.org/newsletters.

The independent journalism and non-commercial programming you rely on every day is in danger.

If you’re reading this, you believe in trusted journalism and in learning without paywalls. You value access to educational content kids love and enriching cultural programming.

Now all of that is at risk.

Federal funding for public media is under threat and if it goes, the impact to our communities will be devastating.

Together, we can defend it. It’s time to protect what matters.

Your voice has protected public media before. Now, it’s needed again. Learn how you can protect the news and programming you depend on.

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