Perry Officially Rejects Texas Insurance Exchange

AUSTIN (November 15, 2012)--Texas Gov. Rick Perry sent a letter to Health and Human Services Commissioner Kathleen Sebelius Thursday saying the state will not set up an exchange to help people buy health insurance.

That means Washington will have to set up the exchange instead.

The health insurance exchanges required under the Affordable Care Act give people without insurance an online market place to buy health insurance that suits them.

People with low incomes and special needs will get subsidized insurance when the exchanges begin operating in October 2013.

The Obama Administration gave states the option of setting up their own exchanges, partnering with the federal government or letting Washington do it.

Perry calls the health care law federal overreach.

“As long as the federal government has the ability to force unknown mandates and costs upon our citizens, while retaining the sole power in approving what an exchange looks like, the notion of a state exchange is merely an illusion,” Perry’s letter said.

“It would not be fiscally responsible to put hard-working Texans on the financial hook for an unknown amount of money to operate a system under rules that have not even been written.”

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