See this link for an excellent radio interview transcription concerning the State Exchange with bullet points concerning the issue.



Wonder why even we that keep up with issues have not heard anything about this from our governor & Senate & House leaders. Were they just going to let this dangerous State Exchange slide into law while they kept all of us busy with the the Private Option Issue?


Obamacare State Exchange in Arkansas To Be Implemented Soon

AT A Cost of $126,457,183!! (See next email for details)

Note the Documentation Below for further explanation


A legislative decision is about to take place that would make Arkansas a full participant in Obamacare, or possibly free Arkansans from all the onerous aspects of the law.


When the Affordable Care Act (Obamacare) was passed, it gave states the opportunity to fully participate by setting up a State Exchange to implement the law.  However, 36 states refused to do so [Some say 34]  Obama then had the DHHS to set up Federal Exchanges to take the place of State Exchanges to implement Obamacare in those 36 states.  (Ordinarily one would think the State Exchange would be better than a Federal exchange, but not so in this case.)


Even though the Affordable Care Act (Obamacare) repeatedly states health care subsidies are available only "through an Exchange established by the State," the IRS is distributing billons of subsidies and enforcing the Individual Mandate and Employer Mandate in those states that never set up a State Exchange. 


After some lower courts ruled the government cannot give subsidies to anyone buying coverage in states with only a Federal Exchange, this issue is now before the Supreme Court  (King vs Burwell) which is expected to rule by early summer.


Arkansas does not now have a State Exchange in operation, but Act 1500 passed in 2013 orders one to be set up by June, 2015, even though only 14 states have a State Exchange.   Some in the legislature are trying to repeal Act 1500.


This Supreme Court ruling and the Arkansas legislature can vastly affect citizens' pocketbooks. If the Court rules that Obamacare can be enforced only in states with a State Exchange then the 36 states without a State Exchange will be free from the Individual Mandate requiring citizens to buy government- approved insurance or pay a penalty tax (up to $2,085) and it frees employers with 50 + employees from the Employer Mandate ($2,000 to $3,000 per employee) that requires companies to meet expensive Obamacare health plan requirements in their employee group benefits.


If the Supreme Court rules in favor of the 36 states without a State Exchange, this would free about 57 million Americans from Obamacare's Individual and Employer Mandates.  In Arkansas about 4,004 businesses and 764,000 employees would be free from the Employer mandate and 129,162 free from the Individual Mandate.


It is my understanding that the Private Option and State Exchange are two separate issues altogether. They are related only in that they both have to do with Obamacare.


Legislators, please repeal Act 1500 that sets up a State Exchange in Arkansas. I understand a legislator is going to file such a bill next week.  


Debbie Pelley


See next email for further details.


1. Forbes article "Halbig v. Burwell Would Free More than 57 Million Americans from the ACA's Individual & Employer Mandates" - the first paragraph describes most of the background information for this letter.  The lower court decisions sort of morphed into one decision that the Court will hear, "King vs Burwell."


2. Link to Act 50 of 2013 that sets up a State Exchange in Arkansas unless it is repealed.  "Arkansas Health Insurance Market Place" is what the State Exchange in Arkansas is named in Act 1500.


3. Link to HB1152 filed in this 2015 Session to appropriate funds to set up the State Exchange.  See page 12, beginning with line 33.  Looks like 40 million is involved in setting up the Exchange and over one million for salaries alone, increasing government employees and bureaucracy once more.


4. Link to Statistics on the number of people the Court case and legislative decision if State Exchange is set up in Arkansas. Forbes article "Halbig v. Burwell Would Free More than 57 Million Americans from the ACA's Individual & Employer Mandates" See Table 1 and Table 2 and surrounding paragraphs for total figures involved and state-by-state estimates.


Posted February 14, 2015 by Debbie Pelley