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Explore our coverage of government and politics.

State Officials Respond To Health Care Exchange Challenge

State officials are responding to a charge that a key part of Vermont’s health care law might be illegal.

The basic issue in this dispute is part of Vermont’s new health care law that requires all individuals and small businesses to go through the new state exchange to purchase insurance after January 1st.

Vermont is the only state in the country to prohibit the sale of policies outside of the Exchange, which is known as Vermont Health Connect, for all individuals and businesses with fewer than 50 employees.

Earlier this month, the chairman of the U.S. House Oversight committee, Rep. Daryl Issa, challenged Vermont’s mandate and said it might be in violation of the Affordable Care Act.

Mark Larson is the commissioner of the Department of Vermont Health Access. In a letter to Rep. Issa, Larson said there’s no doubt that the state is on solid legal ground.

We are confident that Vermont Health Connect is operating fully within state and federal law - Vermont Health Access Commissioner Mark Larson

“We’re confident that Vermont Health Connect is operating fully within state and federal law,” said Larson. “And that we are fully compliant with the Affordable Care Act which sets a floor but not a ceiling for states implementation of health benefit exchanges.”

Rep. Issa also asked for all documents relating to the Vermont Exchange over the past 3 years. Larson said the request was “overbroad” and would be a burden to comply with.

“We think that our focus on implementation of the law and moving forward to prepare for October first which is quickly approaching,” said Larson.  “And our main interest is making sure that we’re ready for Vermonters to have a positive experience on Vermont Health Connect at that time.”

Rep. Peter Welch, a member of the House Oversight committee, views the actions of his Chairman as part of an ongoing Republican effort to overturn the Affordable Care Act.

“That’s just a continuation of the repeal and discredit effort on that letter that he sent to Vermont,” said Welch. “I’m on the committee and I’m from Vermont and there was literally no discussion not only with me but with the committee that was a free lance effort on the part of the chairman basically to just cause a little more trouble.”

And Welch said he’d rather see Congress take steps to help states implement the new law.

“The whole Congress whether you’re for or against the health care law we should be helping states that are making efforts to meet their obligations we shouldn’t be throwing obstacles up in their paths,” said Welch.

State officials said they’re confident that the Vermont Exchange will be up and operating on October 1st but they’re also designing some contingency plans in the event that they run into technical problems.

Bob Kinzel has been covering the Vermont Statehouse since 1981 — longer than any continuously serving member of the Legislature. With his wealth of institutional knowledge, he answers your questions on our series, "Ask Bob."
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