UPDATED (with former Gov. Steve Beshear's response)
Kentucky Gov. Matt Bevin claims that dismantling the state’s health insurance exchange, Kynect, is going to cost much less than some have estimated.
Bevin’s office released a statement Wednesday saying the net cost to the state of transitioning to the federal exchange will be around $236,000. The governor’s office says the federal share will be $3.7 million.
Some estimates had put the cost to dismantle Kynect at around $23 million.
No general fund dollars will be used toward the transition, according to the governor’s office.
“The methodical approach by this administration is paying off,” said Cabinet for Health and Family Services Secretary Vickie Yates Glisson, in the statement. “By transitioning to the federal exchange, Kentucky will save $20 million a year that can be used for other pressing healthcare needs without compromising access to health insurance products.”
Former Gov. Steve Beshear issued his own statement in response, saying Bevin is determined to destroy a sustainable and successful system.
“Governor Bevin insists on moving all Kentuckians to a federal healthcare exchange and cites dollars saved as his number one reason," Beshear said. "However, his math doesn’t add up. This morning he claimed dismantling Kynect would save Kentucky $20 million per year, which is simply untrue. In fact, Kynect was created using federal tax dollars and since January 2015 has been funded with revenues from a one percent premium assessment on insurance companies. Zero dollars have been taken from the Kentucky General Fund to pay for this exchange."
Kentucky Center for Economic Policy executive director Jason Bailey says there are still many questions surrounding the economic impact that dismantling Kynect will have. Bailey couldn't comment further, saying the governor's office has all the information related to the associated costs at this time.
Meanwhile, a new website launched earlier this week that will effectively end up replacing Kynect. Benefind includes applications for Medicaid, as well as other programs.
