Idaho Gov. Butch Otter says that the recent repeal of the Affordable Care Act's individual mandate means that insurers in his state can begin to offer insurance plans that do not cover all of the services required by Obamacare regulations.
On Friday, the Republican governor signed an executive order instructing the state department of insurance to draft new regulations to allow a broader array of insurance policies to be sold in the state.
It's not clear exactly which of the ACA's 10 essential benefits will no longer be required of health plans. More details are expected to come soon.
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"We have been waiting patiently while Congress has been unable to find a solution and Idaho families have been forced to buy products that are too expensive and loaded with benefits they don't want or need," said Otter in a statement explaining the executive order. "Now the door is open for states to pursue our own reasonable solutions."
Most of those who currently purchase health insurance through the ACA exchange likely wouldn't find a non-compliant plan appealing, not only because it doesn't cover certain services, but because it would not be eligible for ACA subsidies. For those who qualify for subsidized plans (and the great majority of ACA customers do), a non-compliant plan with a lower sticker price might end up costing more due to the lack of subsidy.
The legalities of Otter's move is far from clear. One law expert immediately dismissed the idea.
"States can't say we've decided we're not going to follow the federal law anymore," Tim Jost, a Washington and Lee law professor, tells The Hill. "We tried that in the 1860s and it didn't work."
Whether or not Jost's interpretation is correct, there is little doubt that Otter's directive will be challenged in court.
Nevertheless, the executive order got some applause from the insurance industry. Charlene Maher, president of Blue Cross of Idaho, released a statement describing the proposed policy as providing "more options, lower prices and continued access to individual health insurance, especially for middle-class working people who don't currently have health insurance because they can't afford it."
The move appears to be part of a coordinated campaign message between Otter and Lieutenant Governor Brad Little, who is running for governor this fall and is Otter's preferred successor. Modern Healthcare reports that the two plan on touring the state in the coming weeks to tout the new health care policy.
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