2 exchange contracts face a delay

Thursday, February 6, 2014

Questions related to contracts with the state’s health insurance exchange delayed action by a legislative subcommittee Wednesday after the panel’s chairman noted that not enough members were in attendance.

The delay caused the panel to call a meeting for 9 a.m. Monday, hours before the start of the 2014 legislative fiscal session.

Eleven members of the Legislative Council’s 20-member Review Subcommittee are required for the panel to have a quorum, but only four legislators spoke up to be counted during a roll call, said subcommittee Chairman Rep.Jeff Wardlaw, D-Hermitage.

Rep. Andrea Lea, R-Russellville, said seven members had signed in at the beginning of the meeting.

One contract would provide the state Health Insurance Marketplace Board with money from a $3.6 million federal grant to explore the possibility of the state taking over the operations of its exchange from the federal government.

Under the federal healthcare-overhaul law, exchanges allow people to shop for coverage and apply for subsidies to help them pay for it.

The Insurance Department also is seeking approval of an extension of its federally funded contract with Atlanta-based First Data Corp. to provide consulting services related to the federal exchange.

Under an agreement with the U.S. Department of Health and Human Services’ Centers for Medicare and Medicaid Services, the Insurance Department handles some of the consumer outreach for the state’s federally operated exchange and helps regulate the plans that are offered.

The contract extension would allow the Insurance Department to pay First Data up to $713,800 for work from the beginning of last month through the end of this year.

Rep. David Meeks, R-Conway, who supported the law that created the Marketplace Board last year, said he wants the board’s contract with the department to go to the full Legislative Council for review, even though the council is not scheduled to meet again until after the fiscal session, which starts at noon Monday.

“I would love for it to wait and to be properly vetted and allow all members an opportunity to raise concerns and ask questions,” Meeks said after the meeting Wednesday.

The department’s federal grant providing money for the contract is scheduled to go before the Legislative Council’s Performance Evaluation and Expenditure Review Subcommittee today.

Arkansas, Pages 7 on 02/06/2014