Gov. Butch Otter’s executive order grabbed the attention of every state in the nation
On Jan. 5, 2018, Gov. Butch Otter caused a national stir when he issued Executive Order 2018-02, directing the Idaho Department of Insurance to use the flexibility provided by the Trump administration to develop guidelines under which Idaho health insurance carriers could offer coverage plans at significantly lower costs.
His order essentially challenged the federal requirements of Obamacare. The governor’s proposal for state-based plans received wide-spread attention from The Wall Street Journal, The New York Times, The Hill and other national news outlets.
Early in the discussion, former state Sen. Dean Cameron, director of the state Department of Insurance said that insurance plans from Idaho carriers could reduce costs for essential health-care coverage by 30 percent to 50 percent. Such plans, however, would not qualify for an Obamacare subsidy on premium payments. Furthermore, carriers involved must agree to continue offering plans through the Your Health Idaho insurance exchange, where federal subsidies will continue to be available.
Despite running into roadblocks at the federal level, Otter directed Cameron to continue to work toward providing more insurance coverage for Idahoans who have difficulty affording the products available and don’t qualify for subsidies. Otter said he will continue to work on health care during his remaining nine months as governor, and he said the state was still in discussions with the federal officials on his proposed state-based health insurance plans.
A recent public opinion survey by Boise State University shows that Idahoans share NFIB members’ concerns about the rising cost of health insurance. Like NFIB members, those surveyed choose affordability over comprehensive benefits when it comes to insurance plans. The BSU survey showed that three-fourths of respondents agreed that Idaho policymakers should create an Idaho solution for affordable health insurance plans.
Idaho’s small businesses are strongly supportive of more choice and flexibility in the insurance market. Results of the most recent NFIB survey, released on Dec. 20, 2017, show 88 percent of Idaho businesses supporting the availability of lower-priced, less comprehensive options in the individual health insurance market. NFIB endorses the objectives of the January executive order signed by Governor Otter and Lt. Gov. Brad Little.
NFIB Successfully Lobbied for Increased Coverage
On another health-care issue, Senate Bill 1288 provides that foreign insurers licensed to sell individual or group accident and sickness insurance in another state may offer and sell individual or group accident and sickness insurance in Idaho as long as the coverage meets Idaho’s insurance laws. NFIB supports selling across state lines to provide wider access to more affordable insurance plans.
Gap Population
For the sixth year in a row, the Legislature resisted expanding insurance coverage to the ‘gap population’ (those who fall into the coverage gap). Governor Otter’s proposal to address the medial “Gap Population” remained stalled in the House in the 2018 session, and despite several attempts to revive the Idaho Dual Waiver Plan, House Bill 464 was ultimately returned to the House committee where it originated.
The governor had put forth a unique dual-waiver proposal that could have covered about half of Idahoans who now fall into that gap. Advocates of expanding Medicaid have gathered signatures to put the issue on the November 2018 General Election ballot. To accomplish this, they must collect 6 percent, or 59,192 valid signatures from registered voters in at least 18 legislative districts.
We may well see this issue put up for a vote of the people this November because as of May 1, 2018, 60,000 signatures had been gathered.
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