Council rejects contract to promote insurance marketplace

Arkansas lawmakers have rejected a $4.5 million contract to promote the state's insurance marketplace under the federal health care law, a day before signup begins.

A vote to review the contract for the insurance exchange failed Monday before the Arkansas Legislative Council on a 15-26 vote. It was unclear whether Gov. Mike Beebe would move forward with the contract despite the panel's vote.

The contract called for spending federal money on television, radio and newspaper advertising as well as direct mail and billboards to promote the exchange. About 500,000 Arkansans are expected to participate in the health insurance exchange, with open enrollment set to begin Tuesday.

Insurance Commissioner Jay Bradford says he believes Beebe still has the authority to move forward with the contract, despite the panel's vote.

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