State senators heard from a number of groups Wednesday that the state needs to move forward on developing a state-based health insurance exchange.
Some testifying before a joint meeting of two legislative committees said the state shouldn't wait for the Supreme Court to decide a lawsuit seeking to overturn the federal health care reform act.
But Banking, Commerce and Insurance Committee Chairman Rich Pahls said that while the Legislature will continue to move forward with discussions on the insurance exchange, it is likely no bill would get out of committee and be debated in the 2012 regular session.
That could mean a special session would be needed if the state decides to go ahead with its own exchange sometime after the short session adjourns in mid-April.
The health law requires each state to have an exchange by 2014. If a state does not create one, the federal government will do so on its behalf.
Department of Insurance Director Bruce Ramge said Wednesday afternoon it was "too early, too soon" to discuss or speculate on any bills for the coming legislative session.
"This is really an ongoing process," he said. "The administration (Gov. Dave Heineman) has been clear that it prefers to have answers to some of the remaining uncertainties before making a commitment. We're hoping that some of that will be cleared up in the early spring by the Supreme Court."
The court has said it will hear arguments on the constitutionality of the Obama health care plan in March. The traditional end of the high court's term, when most major rulings are issued, is late June.
The state insurance department so far has recommended the state continue to study the exchange options, and watch and wait for the court's decision.
The state learned this week that it will receive a $5.5 million grant to help plan and design an insurance exchange -- a one-stop marketplace where consumers can choose a health insurance plan that fits their needs.
The state has a deadline looming June 29 to apply for another larger grant to design such a health exchange, if it decides to create a state-based exchange. The so-called Level 2 grant could be worth $60 million to $80 million to the state, said Bruce Rieker, with the Nebraska Hospital Association.
The Level 2 grant provides funding to states that are further along in establishing an exchange. To apply, the state must have legislative authority to establish and operate an exchange and have a governance structure.
It must also submit:
* a complete budget through 2014 and an initial plan discussing financial sustainability by 2015.
* a plan outlining steps to prevent fraud, waste and abuse.
* a plan for providing assistance to individuals and small businesses in the state, including a call center.
A lot needs to happen between now and June 29, even if the deadline is extended, and those things will take a great deal of thought, Rieker said.
"It's not something that we can just put together shortly after the Supreme Court decides what it may or may not do," he said.
Speculating that the deadline will be extended is a "huge 'if' to bet on," Rieker said, and a lot of money to gamble.?
"Why not decide it in the regular session? ... The NHA is going to push for legislation that does what is required so it's in place by June 29."
Reach JoAnne Young at 402-473-7228 or jyoung@journalstar.com -- You can follow JoAnne's tweets at twitter.com/ljslegislature.
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