"House Republicans rhetorically exalt the private health insurance marketplace," said Ron Pollack head of Families USA, a healthcare advocacy group. "They ironically, however, plan to de-fund the creation of such state marketplaces that would enable consumers and small businesses to choose the private health plans they want."
The debate over the exchange bill covered familiar ground. Democrats argued the healthcare law already helps millions of people. Republicans argued that the law is costly and gives the federal government too big a role in setting coverage benefits.
"This is not a free-market system; it is essentially central planning," said Republican Representative Phil Roe.
Democratic Representative Frank Pallone said the effort to deny federal grants to the states would not kill the exchanges. Rather, it would make it harder for cash-strapped states to establish their own marketplaces and give more power to the federal government, Pallone said.
The healthcare law calls for the federal government to set up exchanges for states that fail to establish their own.
The nonpartisan Congressional Budget Office said the House bill would delay establishment of state exchanges and save $14.6 billion over the next 10 years mostly because fewer people would purchase government-subsidized insurance.
