Idaho GOP freshmen signal exchange support

BOISE (AP) - In a rare freshman power play, 16 House Republican newcomers pledged Wednesday to support Gov. Butch Otter's proposal for a state-designed insurance exchange - provided it's coupled with protections giving the Idaho Legislature more oversight over how it's set up and operated.

Otter's plan to build a state-based, nonprofit marketplace to offer insurance to individuals and small businesses, required under President Obama's health care overhaul come 2014, is awaiting full Senate debate.

On Wednesday morning, the House group that includes most of the chamber's 23 GOP freshman said they would support that measure if it includes provisions forbidding Idaho from using state taxpayer money to fund it, add two non-voting legislators to an 18-member exchange board of directors and require the board meet openly, so the public can monitor its decisions.

Debate over an Idaho-based exchange has been politically charged, with many residents who attended a Senate hearing last week angrily urging lawmakers to reject it, on grounds it was acquiescing to Washington pressure.

"I wasn't looking for cover," said Rep. Robert Anderst, R-Nampa and a member of the freshman group, on why he joined amid the tense rhetoric. "I was looking for the best way forward. Individually, we have little to no influence. But as a group, if there are things we can do to help in this effort, let's stand together."

Otter indicated he supports the group's push.

"The House had concerns - we're just addressing those concerns," said Tammy Perkins, one of the Republican governor's aides. "This is just going to make them more confident with the legislation, and we're fine with that."

Senate President Pro Tem Brent Hill, R-Rexburg, also offered tentative support.

"I haven't read the bill, but I've talked to them about it in concept," Hill told The Associated Press. "As near as I can tell, they're good additions."

Rep. Luke Malek, R-Coeur d'Alene, and another leader of the freshman group, said its members still oppose Obama's 2010 law, but believe an exchange is inevitable after passing U.S. Supreme Court muster in 2012.

Rather than adopting a federal exchange, as about 25 other Republican-led states are have opted to do, Malek argued the best path for Idaho is to design a state-specific version coupled with strong governance rules.

"We have introduced legislation in the insurance exchange battle that protects individual rights, defends state sovereignty and gives Idaho what we believe to be the best option for dealing with the realities of Obamacare," Malek said.

The group's bill won introduction Wednesday in the House Health and Welfare Committee.

Just a single member - House Majority Caucus Chairman John Vander Woude, of Nampa - opposed its introduction.

"I'm against a state exchange," Vander Woude said afterward. "Why would I vote for something that helps create it?"

Rep. Kathy Sims, R-Coeur d'Alene, released a statement on Wednesday in response to the bill, which she believes would help the establishment of Obama Care in Idaho and use already-scarce funding.

"The establishment of Obamacare in Idaho would cost every citizen of Idaho thousands of dollars per year," she wrote. "As the law is written, it is totally unworkable and if Idaho spends one dime on this power grab by setting up an exchange of any type it's money that's been wasted.

"This is money we don't have and will be forced to spend to promote absolute federal control over virtually every aspect of any so-called state exchange. How is it possible to not recognize this as socialism?"

Rep. Vito Barbieri, R-Dalton Gardens, said the proposal from the freshmen is a "naive attempt" to amend a Senate bill that hasn't been heard on the Senate floor.

"Only a freshman would attempt this by drafting a House bill," Barbieri wrote. "State control of the health exchange is still non-existent. Praiseworthy are the other eight freshmen who did not participate and stood on their principles.

"Importantly, the freshmen bill makes no change to an important provision that the state exchange requires insurance plans to conform to 'applicable law.' Thus, any federal law or regulation, whether it requires abortions or any other provision devised by the federal agencies, would be mandated within the state health exchange with no recourse."

Wayne Hoffman, leader of the Idaho Freedom Foundation and fierce state exchange opponent, was also disappointed that so many GOP freshman were behind the bill - a development that suggests there are now plenty of House votes for Otter's plan.

To pass, the exchange bill and the freshman group's companion measure need at least 36 votes.

One of the 16 freshmen, Rep. Kelley Packer, of McCammon, said she has been threatened by some that her political career would be in jeopardy in the 2014 election, if she backed a state exchange. She didn't say who.

That's a risk Packer said she's willing to take, provided the appropriate sideboards are in place.

"Simply doing nothing is irresponsible," she said.

Press staff contributed to this report.