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AFP Applauds Governor Brewer for Rejecting a Health Insurance Exchange

November 29, 2012

Governor Stands up for Arizona Taxpayers and Health Care Freedom

PHOENIX, AZ–Today Americans for Prosperity (AFP), the nation’s largest and most effective advocate for economic freedom, released the following statement thanking Governor Jan Brewer for rejecting a state-funded health insurance exchange in Arizona.

“AFP applauds the actions of Governor Brewer in rejecting a health insurance exchange in the state of Arizona,” said Tom Jenney, AFP Arizona State Director. “A state-funded exchange would increase insurance premiums on consumers and taxes on hardworking Arizona families.”

Multiple governors have announced that they will not create an exchange, including Terry Branstad (IA), Mike Pence (IN), Dave Heineman (NE), Paul LePage (ME), Robert Bentley (AL), Bobby Jindal (LA), Sam Brownback (KS), Rick Perry (TX), Nikki Haley (SC), Nathan Deal (GA), Robert McDonnell (VA), Jay Nixon (MO) and others.

It is encouraging to see Governor Brewer take a principled stand to reject an exchange and join the growing chorus of governors who reject state-funded exchanges,” Jenney continued.  “Gov. Brewer is entirely correct in concluding that an Arizona exchange would be very costly and would not give Arizona any real local control over its insurance market.”

The federal government is offering large grants to states to create exchanges between now and the end of 2014.  But all exchanges must be self-funding starting in 2015. Each governor must notify the federal government of his or her decision whether to create a state-based health insurance exchange, defer to the federal government or partner on a hybrid-exchange.

“Federal funds are flowing freely to buy state compliance, but state budgets will take the hit in two short years. Governor Brewer shows real leadership in rejecting these temporary funds,” said Nicole Kaeding, AFP state policy manager. “Creating an exchange puts state taxpayers on the hook for millions of dollars every year. States should reject these bloated bureaucracies.”

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