Virginia’s Governor-Elect Says No to Gov’t-Run Health Care Option
Virginia's Governor-elect Bob McDonnell (R) said that his administration would not participate in a government-run health insurance plan, if one is passed by Congress and signed into law. He also urged other governors to "stand up" against federal proposals if they are not good for their states.
(CNSNews.com) – Virginia’s Governor-elect Bob McDonnell (R) said that his administration would not participate in a government-run health insurance plan, if one is passed by Congress and signed into law. He also urged other governors to “stand up” against federal proposals if they are not good for their states.
McDonnell, who won election on Nov. 3 with 59 percent of the vote, said on the Nov. 8 edition of CNN’s “State of the Union” that a government-run public option would be bad for his recently red state. McDonnell also said that during the campaign he heard concerns from Virginia voters about the negative consequences of the congressional Democrats’ health care overhauls.
“My concern is just from hearing from Virginians over the last couple of months, is the increase in cost, less choices, perhaps longer waiting lines, and more government control,” McDonnell said on CNN.
“Families and businesses in Virginia told me they’re very concerned about those [issues], taking money from Medicare, maybe $400 billion,” he said.
McDonnell further noted that while he had not read the 2,000-plus-page bill, the public option was not something that would “help us in Virginia.”
“So I need to digest what happened last night,” McDonnell said in reference to Saturday’s near-midnight passage of the House health care bill. “But the public option does not seem to be something that is going to help us in Virginia.”
Two different options
The public option, as enshrined in the House-passed bill, would be a government health insurance agency run by the Department of Health and Human Services (HHS) and available through the federal Health Insurance Exchange.
As the bill states (HR 3962): “There is established within the Health Choices Administration and under the direction of the Commissioner a Health Insurance Exchange in order to facilitate access of individuals and employers, through a transparent process, to a variety of choices of affordable, quality health insurance coverage, including a public health insurance option.”
However, states can run their own exchanges provided they get permission from the federal government – permission which will only be granted to states whose exchanges mirror the federal exchange.
Again, the bill reads: “If—(1) a State (or group of States, subject to the approval of the Commissioner) applies to the Commissioner for approval of a State-based Health Insurance Exchange to operate in the State (or group of States); and (2) the Commissioner approves such State-based Health Insurance Exchange then, subject to subsections (c) and (d), the State-based Health Insurance Exchange shall operate, instead of the Health Insurance Exchange, with respect to such State (or group of States).”
If a state does not meet federal requirements, which will be determined by the HHS secretary (currently Kathleen Sebelius), it cannot operate its own exchange.
The most recent Senate version of health care reform, written by the Finance Committee, says that each state is required to create two separate exchanges, one for individuals and large businesses and one for small businesses, with the option to combine the two.
That bill reads: “(1) an exchange for the State that is designed to facilitate the enrollment of qualified individuals in qualified health benefits plans offered in the individual market in the State;
“and (2) a Small Business Health Options Program (in this title referred to as a ‘SHOP exchange’) that is designed to assist qualified small employers in facilitating the enrollment of their employees in qualified health benefits plans offered in either the individual or the small group market in the State.”
The Senate plan includes an exit strategy of sorts – a waiver to “all or any” of the bill’s requirements – for states that already have health insurance plans in place or that simply want to avoid the myriad of mandates imposed by the legislation.
“A State may apply to the Secretary for the waiver of all or any requirements under this title,” the bill stated, “with respect to health insurance coverage within that State for plan years beginning on or after July 1, 2015.”
The secretary will approve the waiver and its terms, if the state can show that it provides at least as much coverage to its citizens as they would get from the government reforms. If not, then the HHS secretary would notify the state and send the matter to Congress.
“If the Secretary determines a waiver should not be granted under this section, the Secretary shall notify the State involved, and the appropriate committees of Congress of such determination and the reasons therefore,” the proposed law states.
The Senate Finance Committee plan does not contain a government-run public option, although Senate Majority Leader Harry Reid (D-Nev.) has pledged to include one in his final floor version. Reid’s public option would include an opt-out provision for states, which would not have to offer it in the exchanges they set up.
“The best way to move forward is with a public option with an opt-out provision for states,” Reid said at an Oct. 27 press conference. “Under this concept states will be able to determine whether the public option works best for them and will have the ability to opt out if they so choose.”
Standing up for states
McDonnell said that regardless of which proposal comes out on top, Virginia will not be participating, adding that he preferred to handle things himself rather than accept Washington’s dictates.
“Well, either way, my preference would be not to have Virginia participate,” McDonnell told CNN. “We’ve outlined a number of things I think we can do at our state level, John [King, host of “State of the Union”], that will help our people have more access at lower cost, but I’m very concerned about turning this significant section of the American economy over to the federal government.”
McDonnell said that other state governors needed to “stand up” to Washington when federal policies are bad for individual states.
“I believe that a governor should stand up to Washington,” he said. “If they do things that are bad for Virginia, that are going to kill jobs or raise taxes or create new bureaucracy or hurt small business, I will be a governor that will stand up and say, that’s not good for Virginia.”
McDonnell added that he and his fellow governors, both Republicans and Democrats, knew their states best and were well-positioned to make decisions on which health reforms work – not Washington bureaucrats.
“I believe in our federal system,” he said, “that the governors, Republican and Democrat around the country, [are] closer to the people [and] can make some of these decisions better.”

Republican gubernatorial candidate Bob McDonnell waves to supporters at his polling place in Glen Allen, Va., Tuesday, Nov. 3, 2009. McDonnell faces Democrat Creigh Deeds in today's election. (AP Photo/Steve Helber)
McDonnell, who won election on Nov. 3 with 59 percent of the vote, said on the Nov. 8 edition of CNN’s “State of the Union” that a government-run public option would be bad for his recently red state. McDonnell also said that during the campaign he heard concerns from Virginia voters about the negative consequences of the congressional Democrats’ health care overhauls.
“My concern is just from hearing from Virginians over the last couple of months, is the increase in cost, less choices, perhaps longer waiting lines, and more government control,” McDonnell said on CNN.
“Families and businesses in Virginia told me they’re very concerned about those [issues], taking money from Medicare, maybe $400 billion,” he said.
McDonnell further noted that while he had not read the 2,000-plus-page bill, the public option was not something that would “help us in Virginia.”
“So I need to digest what happened last night,” McDonnell said in reference to Saturday’s near-midnight passage of the House health care bill. “But the public option does not seem to be something that is going to help us in Virginia.”
Two different options
The public option, as enshrined in the House-passed bill, would be a government health insurance agency run by the Department of Health and Human Services (HHS) and available through the federal Health Insurance Exchange.
As the bill states (HR 3962): “There is established within the Health Choices Administration and under the direction of the Commissioner a Health Insurance Exchange in order to facilitate access of individuals and employers, through a transparent process, to a variety of choices of affordable, quality health insurance coverage, including a public health insurance option.”
However, states can run their own exchanges provided they get permission from the federal government – permission which will only be granted to states whose exchanges mirror the federal exchange.
Again, the bill reads: “If—(1) a State (or group of States, subject to the approval of the Commissioner) applies to the Commissioner for approval of a State-based Health Insurance Exchange to operate in the State (or group of States); and (2) the Commissioner approves such State-based Health Insurance Exchange then, subject to subsections (c) and (d), the State-based Health Insurance Exchange shall operate, instead of the Health Insurance Exchange, with respect to such State (or group of States).”
If a state does not meet federal requirements, which will be determined by the HHS secretary (currently Kathleen Sebelius), it cannot operate its own exchange.
The most recent Senate version of health care reform, written by the Finance Committee, says that each state is required to create two separate exchanges, one for individuals and large businesses and one for small businesses, with the option to combine the two.
That bill reads: “(1) an exchange for the State that is designed to facilitate the enrollment of qualified individuals in qualified health benefits plans offered in the individual market in the State;
“and (2) a Small Business Health Options Program (in this title referred to as a ‘SHOP exchange’) that is designed to assist qualified small employers in facilitating the enrollment of their employees in qualified health benefits plans offered in either the individual or the small group market in the State.”
The Senate plan includes an exit strategy of sorts – a waiver to “all or any” of the bill’s requirements – for states that already have health insurance plans in place or that simply want to avoid the myriad of mandates imposed by the legislation.
“A State may apply to the Secretary for the waiver of all or any requirements under this title,” the bill stated, “with respect to health insurance coverage within that State for plan years beginning on or after July 1, 2015.”
The secretary will approve the waiver and its terms, if the state can show that it provides at least as much coverage to its citizens as they would get from the government reforms. If not, then the HHS secretary would notify the state and send the matter to Congress.
“If the Secretary determines a waiver should not be granted under this section, the Secretary shall notify the State involved, and the appropriate committees of Congress of such determination and the reasons therefore,” the proposed law states.
The Senate Finance Committee plan does not contain a government-run public option, although Senate Majority Leader Harry Reid (D-Nev.) has pledged to include one in his final floor version. Reid’s public option would include an opt-out provision for states, which would not have to offer it in the exchanges they set up.
“The best way to move forward is with a public option with an opt-out provision for states,” Reid said at an Oct. 27 press conference. “Under this concept states will be able to determine whether the public option works best for them and will have the ability to opt out if they so choose.”
Standing up for states
McDonnell said that regardless of which proposal comes out on top, Virginia will not be participating, adding that he preferred to handle things himself rather than accept Washington’s dictates.
“Well, either way, my preference would be not to have Virginia participate,” McDonnell told CNN. “We’ve outlined a number of things I think we can do at our state level, John [King, host of “State of the Union”], that will help our people have more access at lower cost, but I’m very concerned about turning this significant section of the American economy over to the federal government.”
McDonnell said that other state governors needed to “stand up” to Washington when federal policies are bad for individual states.
“I believe that a governor should stand up to Washington,” he said. “If they do things that are bad for Virginia, that are going to kill jobs or raise taxes or create new bureaucracy or hurt small business, I will be a governor that will stand up and say, that’s not good for Virginia.”
McDonnell added that he and his fellow governors, both Republicans and Democrats, knew their states best and were well-positioned to make decisions on which health reforms work – not Washington bureaucrats.
“I believe in our federal system,” he said, “that the governors, Republican and Democrat around the country, [are] closer to the people [and] can make some of these decisions better.”




