Monday, May 9, 2011

House GOP Votes To Defund State Exchanges

(Reuters) - In a renewed attack against President Barack Obama's healthcare overhaul program, House Republicans voted on Tuesday to deny funding for a central element of the law that sets up marketplaces for people to shop for health insurance coverage.

The bill passed by the House of Representatives would rescind some $1.9 billion in grants that are being made available under the healthcare law to help states establish insurance exchanges where individuals and small businesses can shop for medical coverage plans.

The exchange idea is central to the law that has faced a number of challenges in Congress and the courts since it was enacted more than a year ago. Tuesday's bill, which passed on a largely party-line vote of 283-183, likely will be blocked by the Democratic-led Senate, just as an earlier effort by House Republicans to repeal the entire healthcare law was defeated.

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