Ohio Right to Nix Insurance Exchange

Even though about four weeks remained before a federal government deadline on deciding whether states would set up insurance exchanges, Ohio Gov. John Kasich was right to say no to the idea last week.

Such exchanges, part of the new national health care law, would allow individuals, families and small businesses to purchase insurance through either state or federal systems. U.S. Department of Health and Human Services officials prefer states set up the exchanges.

Kasich last week said no to that. That will leave it up to the federal government to establish an insurance exchange for Ohio.

As we have noted previously, state-run exchanges make no sense. They would be costly to states and would require them to take some of the heat for limited insurance choices and higher prices. In addition, a state-run exchange would force businesses to provide government-approved insurance to workers, or pay $2,000 taxes each year for every employee. Forcing the federal government to operate the exchange avoids that.

Governors had been told they had four more weeks to decide on whether their states would operate insurance exchanges. But Kasich did the right thing by going ahead and rejecting the proposal.