President Obama signs PPACA. (AP Photo)
LINCOLN, Neb. (AP) — Nebraska state lawmakers heard nearly three hours of testimony Tuesday on two bills that could lead to the creation of a Nebraska Health Benefit Exchange Act.
State Sen. Rich Pahls of Boys Town, Neb., and state Sen. Jeremy Nordquist of Omaha, Neb., each has introduced an exchange bill. Pahls and Nordquist have acknowledged that their bills are similar. They have said that their proposals are works in progress and will likely evolve over the next few weeks.
Nebraska is developing the bills in response to the federal Patient Protection and Affordable Care Act of 2010 (PPACA), which calls for states to have an exchange operating by 2014.
If the act takes effect as written and works as drafters expect, an exchange will be a Web-based supermarket for health insurance. Individuals and small employers will use new federal tax subsidies to buy pre-vetted, standardized health insurance through the exchange.
If a state doesn't have a plan in place by 2014, the U.S. Department of Health and Human Services (HHS) will have the authority to provide exchange services for the state's residents.
Exchange program supporters testified at the hearing that Nebraska needs to act immediately to avoid coming under federal exchange program control.
Tiffany Seibert, Sen. Nordquist's legislative aide, said if the Nebraska exchange is approved, as many as 120,000 Nebraskans would be able to buy quality health insurance.
"It is intended to make sure that Nebraskans can buy the insurance that they need," she said.
"This is health insurance for Nebraskans, by Nebraskans."
Opponents said the state should wait for the Supreme Court to rule on the constitutionality of PPACA.
"Nebraska will have substantial flexibility if we decide to enact our own exchange," said Mary Ann Borgeson, vice chairwoman of the Douglas County Commission and a representative of the
Nebraska Health Care Alliance. "We have the opportunity in Nebraska to keep the exchange simple and cost-effective."
Opponent John McCollister, executive director of the Platte Institute for Economic Research, said that there is little threat of a federal "takeover" and that the state does not have to act so quickly.
"While some proponents of these bills insist the exchanges must be set up immediately to retain local control, it is clear the federal Department of Health and Human Services is willing to push back deadlines to accommodate legal challenges and determine what federal regulations will be introduced," McCollister said.
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