“State Exchange” Act Summary:
WHY VOTERS SAID “NO –to Arkansas Health Insurance Marketplace Act 2013
By Brenda Vassaur Taylor, Co-Founder of Conduit for Commerce
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Act (using the word “Marketplace” rather than “Exchange”) establishes an independent non-profit organization which–
- Does not pay any state or local taxes but has complete and independent Rule making authority;
- Is not a government agency therefore is not subject to Arkansas law imposed on government agencies;
- Is run by an independent 11 member board appointed to six year terms;
- With only voter oversight being a 12 member Legislative Committee which may ask questions….with no control.
3 yr budget shows taxpayers’ dollars spent to implement government plan outside voter control:
- Total of 12 employees–cost of $4.48 Million over 3 years—only 5 paid under $95,000 per year:
- Top five employees starting annual salaries at –
- $200,000 + $60,000 fringe benefits= $260,000 (Exec Director)
- $150,000 + $45,000 fringe benefits=$195,000 (Director of Operations)
- $120,000 + $36,000 fringe benefits=$156,000 (IT Manager)
- $110,000 + $33,000 fringe benefits=$143,000 (Director of Finance)
- $100,000 + $30,000 fringe benefits=$130,000 (Attorney Specialist)
- plus a 3.5% COLA annual increase for all.
- Consultant Fees of $7 Million—in addition to highly paid management team of 12 employees
- Travel Expense $327,350 (Staff and Board Members-in state and out of state)
- One time conference–$200,000
- Other–$580,550 (not categorized.)
- Contracts with Outside firms-Total of $113.7 Million (that is almost $114 million):
- Media–$10 Million
- To Plan Management Activities–$2.25 Million (in addition to what the 7 Million dollar Consultant and management employees will be paid to do)
- Navigators to enroll folks and train them–$5 Million
- Call Center–$15 Million
- IT—$81.5 Million (we know how well that works)
- Top five employees starting annual salaries at –
Page 9 Exchange Budget: https://static.ark.org/eeuploads/arhim/Level_Two_AHIM_Grant_Budget_Narrative.pdf
Page 6-Marketplace/Exchange is exempt from AR law…
Page 8-Not required to give any financial impact statement to Legislature if it determines too costly to do so.
Page 9-Marketplace may make rules and implement immediately as it determines necessary under its own determination and authority.
Pages 9-10-Marketplace operates only is under the control of its 11 member Board of Directors who are appointed as follows: 3 by Governor (made by Beebe), 3 by President Pro Tempore (made by Michael Lamoureux) , 3 by Speaker of the House (Davy Carter)—with 4, 6, 8 year terms in each of three groups….and then rotate by 6 year terms; Insurance Commissioner; DHS Director.
Page 18-AR Rules by Insurance Commissioner shall be overridden by Federal HHS rules.
Page 19-20-A 12 member Legislative Oversight Committee made up of 6 appointed by Speaker and 6 appointed by President Pro Tempore of Senate—may meet quarterly and may ask Marketplace to report annually (Dec 15) on anything it thinks necessary. (Review only)
Page 20-21-Marketplace (Hybrid Partnership with Feds Exchange) may transfer its control to a newly established full blown State-Exchange (marketplace) when it determines it so desires after July 1, 2015 (unless interceding legislation prevents this.)
Page 21—Intent of the 2013 Legislation is to establish a State Exchange.
