What you aren’t being told about a state-based exchange in Illinois

A recent piece in the Chicago Tribune shows that some in Illinois remain very interested in establishing a state-based health insurance exchange. Under the Affordable Care Act, or ACA, states have the option of applying for federal dollars to establish a state-based health insurance exchange instead of using the federal exchange, healthcare.gov. But not only...

A recent piece in the Chicago Tribune shows that some in Illinois remain very interested in establishing a state-based health insurance exchange. Under the Affordable Care Act, or ACA, states have the option of applying for federal dollars to establish a state-based health insurance exchange instead of using the federal exchange, healthcare.gov.

But not only have the vast majority of states declined to establish their own exchanges, some states are now abandoning their state-based exchange and returning to the federal exchange.

Thus far, Illinois lawmakers have wisely rejected the notion of a state-based exchange. The cost to Illinois taxpayers for such an endeavor could easily reach $100 million annually, according to the state government’s own estimate.

While the federal government does provide funding for establishing the exchange, states are responsible for all remaining operating and maintenance costs. These costs include personnel salaries, employee benefits, information-technology costs, employee-retirement costs down the road and administrative costs.

This approach does nothing to deliver on the president’s unmet promises of greater health-care access and affordability. Instead of chasing schemes to collect “free” federal dollars that will put taxpayers on the hook for every penny of future costs, state lawmakers should be directing their attention to addressing the cost of care and finding ways to give Illinois families greater control over their health-care decisions.