Gov. Bob McDonnell said today he still wants Virginia to operate its own health insurance exchange if the U.S. Supreme Court upholds the federal mandate that all individuals have health insurance under the Patient Protection and Affordable Care Act.
However, McDonnell said he does not want to create an exchange legislatively until after the court makes its decision on the mandate’s constitutionality. The court will hear arguments in the case in March and possibly rule in July, just after a federal deadline for states to seek grant money to set up exchanges.
“Any major expense prior to the court decision is irresponsible and a waste of money,” the governor said at a luncheon meeting with members of the Capitol press corps.
Earlier this week, Virginia Secretary of Health and Human Resources Bill Hazel said no new legislation would be needed now to create an exchange because too many questions about its structure remain unanswered by federal officials.
But Del. Terry G. Kilgore, R-Scott, said he has asked for legislation to be drafted for introduction in the General Assembly next month to create an exchange. Otherwise, Kilgore said the state risks having the federal government impose its own exchange and rules on Virginia.
McDonnell said the state can continue to plan for its own exchange under a law adopted earlier this year, and then seek new legislation later if necessary to carry out the plans.
He dismissed the threat of federal action if the state misses deadlines under the law for demonstrating it can have an exchange operating by Jan. 1, 2014. Virginia has until Jan. 1, 2013, to make that showing.
“I’m not that concerned about the deadlines,” he said.
McDonnell said he hopes the Supreme Court will strike down the law’s individual mandate, rendering an exchange unnecessary, but he made clear he wants Virginia to operate the exchange if the law stands.
“If we have to do it, I clearly want to have a state-based exchange,” he said.
(This has been a breaking news update. Check back for more details as they become available. Read more in tomorrow's Richmond Times-Dispatch.)
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