Louisiana is opting out of creating health insurance exchanges at the state level which is part of the new federal healthcare bill according to Bruce Greenstein of Health and Hospitals.  The article “Louisiana to Opt Out of Health Insurance Exchanges in Federal Law” by Jan Moller found on Nola.com details the factors behind their decision.

Louisiana will be sending back a $1 million federal grant which states received to help get the exchanges started.  The federal government hopes these exchanges will create a regulated market where consumers and small businesses can purchase private individual health insurance which is subsidized.  Louisiana making this decision about their health insurance means the federal government will be administering the exchange once healthcare reform takes full effect in 2014.

Louisiana health insurance is the second system to announce it won’t be setting up their own exchanges.  Florida had announce they were not participating previously.  Greenstein says the government hasn’t been much help guiding the states on how the exchanges should be set up or how they will work.  It’s not even clear why type of coverage these exchanges should provide.  With so many questions involved in may make sense to let the federal government handle the situation in 2014.  Louisiana is on board with about 24 other states that have challenged healthcare reform and are questioning its constitutionality.  It would make sense if many of these states challenging the new law eventually turn down the exchanges as well.