Kentucky Governor Matt Bevin is making good on his campaign promise to close the doors on Kynect, the state’s Obamacare exchange. While Democratic former Governor Steve Beshear and a handful of Obamacare supporters have made waves about that decision, it has raised a bigger question: Does it make sense to run a state-based exchange?
Kynect is causing higher premiums for most residents of Kentucky, is not fiscally sustainable, and serves almost exclusively as a channel for Medicaid enrollment — Gov. Bevin is prudent to push to switch to the federal exchange.
Few States Run Obamacare Exchanges
Although Obamacare supporters initially hoped all states would set up their own Obamacare exchanges, state leaders in most states – red and blue alike – carefully considered the option and rejected it. In fact, just 13 states now operate their own Obamacare exchanges, and the vast majority of those 13 states dove headfirst into implement every aspect of Obamacare. State policymakers who rejected these exchanges, despite the billions of dollars in federal grants being dangled in front of them, have proved prescient – California, Colorado, Hawaii, Massachusetts, Minnesota, Nevada, Oregon, Rhode Island, Vermont and Washington have all run into serious issues running their own Obamacare exchanges.