LANSING – Governor Rick Snyder’s decision to abandon legislation that would set up a state-run health insurance exchange due to opposition from House Republicans and to instead pursue a state-federal partnership to create the exchange was met with understanding, but disappointment by exchange supporters Thursday.

Paul Duguay, deputy director of the Michigan Association of Health Plans, said the group supports Snyder’s decision. The concern now is how much involvement the state will have in such a partnership. State officials have previously said it might not be much.

“There isn’t a whole lot of choice,” he said. “If the Legislature isn’t going to move it, it’s probably just a natural consequence.”

Still, this is a concern, Duguay said. An exchange would be a good vehicle for creating greater competition in the insurance market.

“That’s perhaps an opportunity that’s slipping away,” he said. “What we are disappointed with is the potential loss of control and losing an opportunity to kind of make the marketplace more of an even playing field.”

The association is researching how a joint state-federal partnership would work. It anticipates the Office of Financial and Insurance Regulation would still handle the customer-service end of the issue, just as it would have in the exchange (SB 693 ).

But the role of the federal government is a wild-card, Duguay said.

“Like anything else, when the feds are involved we can’t really assume too much with respect to how things are going to be run,” he said.

Rep. Gail Haines (R-Lake Angelus), chair of the Health Policy Committee, and Rep. Al Pscholka (R-Stevensville), chair of the House Appropriations Licensing and Regulatory Affairs Subcommittee, which were heading up recent hearings on the health exchange, did not return messages seeking comment. A House Democratic spokesperson also did not return a message seeking comment.

Bob McCann, spokesperson for Senate Minority Leader Gretchen Whitmer (D-East Lansing), said news of the governor having to go around the Legislature because of House Republican inaction was disappointing.

“I think the people of Michigan would have been better served had the House Republicans done their job,” Mr. McCann said, adding politics trumps policy with the House GOP. “We did our job months ago.”

This story was provided by Gongwer News Service. To subscribe, click on Gongwer.Com