Another State Governor Denies Exchange Funding

Last week, Wisconsin Governor Scott Walker officially denied $37 million in federal funding to set up the state’s insurance exchange. State exchanges, key components of the ACA that provide online marketplaces for insurance plans, have been very controversial. Setting up the exchanges is a tricky issue for state governments to deal with in light of the upcoming Supreme Court case against the law. 

While Walker has been criticized for making a “purely political” decision, partisan politics is not the reason why Walker claims he denied the funding. He indicated that Wisconsin has chosen to wait until there is a definitive answer about the constitutionality of the ACA. As we saw when HHS halted implementation of the CLASS Act, wasting money on doomed programs is not in anyone’s best interest.

It is incredibly rare for states to turn down any federal funding, especially in this economic climate. By doing so, Walker is making quite a strong statement against the ACA.

Clearly many states do not want to implement exchanges or many other provisions of the health reform law. While the federal government can step in and set up exchanges in states that fail to create their own, the administrative feasibility of that option is highly doubted. Without state compliance on key ACA programs like the exchanges, this law will fail to work as intended. 

By: Emily Egan and Kristen Hayford