Kentucky moves ahead with plans to dismantle health exchange

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FRANKFORT, Ky. (AP) – Kentucky’s new Republican administration is moving forward with plans to shut down the state’s health insurance exchange, becoming the first state to cut ties with one of the key pieces of President Barack Obama’s signature health care law because of a political promise.

Gov. Matt Bevin notified federal officials in a letter dated Dec. 30 that the state exchange will cease operations “as soon as is practicable.” That will be at least a year from now, according to federal law. It will not affect health plans sold for 2016.

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More than 100,000 people have purchased private health insurance plans on kynect with the help of a federal subsidy. But Bevin said it was not fair for the majority of Kentuckians to pay for a system that just 2 percent of the population uses.

 

Copyright 2016 The Associated Press.