Beshear: Reviving insurance exchange to reap bigger savings

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FRANKFORT, Ky. (AP) – Relaunching Kentucky’s health insurance exchange to allow people to sign up for health coverage will result in bigger savings than anticipated, Gov. Andy Beshear says.

Kentuckians now using the federal site to obtain health coverage pay about $9 million to $10 million a year to the government through a surcharge on plans. The federal government notified Kentucky that it will raise that amount to $15 million, Beshear said Monday.

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Reviving the state-based exchange, by contrast, will cost about $5 million, and operating it will cost about $2 million a year, the Democratic governor said. Beshear said he hopes those savings will be passed along to people who buy health plans through the exchange.

Beshear recently notified federal officials of his plans to revive the state exchange at the start of 2022. The state’s online exchange was started by Beshear’s father, former Gov. Steve Beshear, but was abolished by former Republican Gov. Matt Bevin.