Governor Dave Heineman says it was too costly to implement a state run health exchange under the Federal Health Care Law
Heineman says his decision was based on the extreme cost to Nebraska taxpayers. “I want to share with Nebraskans that I have listened to all sides of this issue,” Heineman said during a news conference. “As Governor, my focus is on implementing the federal health care law in the most efficient and cost effective manner for Nebraskans and their families.”
Heineman says the cost of a state insurance exchange from 2013-2020 would be $646 million. The cost of a federal insurance exchange is $176 million, a $470 million dollar difference.
The costs associated with building, managing and maintaining a state-based exchange included website development, call center operations, an insurance premium billing system, staffing, equipment, supplies, office space and the technology costs related to each of these functions.
These costs also include expenses necessary for the exchange to interface with the Medicaid program.
