919-733-5708

2007 Legislative Building

Raleigh, N.C. 27601

FOR IMMEDIATE RELEASE                                   Contacts: Amy Auth, 919-301-1737
February 4, 2013                                                                     Shelly Carver, 919-301-1744

Raleigh, N.C. – The North Carolina Senate tentatively passed legislation Monday night to opt out of participation in several expensive provisions of Obamacare.

Senate Bill 4 exempts North Carolina from establishing a state-based health insurance exchange or a state-federal partnership exchange. It directs the N.C. Department of Insurance to return unspent taxpayer funds awarded by the federal government earlier this month to create a state-federal partnership exchange. And it rules out expansion of the North Carolina Medicaid program.

Below is a statement from the bill’s primary sponsor, Sen. Tom Apodaca (R-Henderson):

“We are not running a state exchange because, to be honest, there’s no such thing. A state exchange gives no state control but would cost the people of North Carolina $100 million a year. The federal government chose to mandate health exchanges, so it should pay for them.”

“And Obamacare’s changes to Medicaid would cost North Carolinians close to a billion dollars through 2019. The federal government is trying to bait us in with ‘free’ federal money that switches to state money after a few years, leaving our taxpayers holding the bag. We are working to protect the economic health of our state.”

Costs for North Carolina’s existing Medicaid program have increased significantly in recent years. In 2012, the General Assembly was forced to fill a surprise Medicaid shortfall that totaled more than $500 million.  In fact, an audit released last week shows shortfalls totaling approximately $1.4 billion over the last three years.