The House voted 238-183 to eliminate federal grant money to help states establish their own insurance exchanges, according to a report by the Hill.
Democrats charged the bill would tie states' hands and shift power to the federal government. "It's the exact opposite of what you're saying you want to do," Rep. Frank Pallone (D-N.J.) said during floor debate. But Rep. Michael Burgess (R-Texas) said states don't really have flexibility on how to structure the new insurance marketplaces.
The reform law creates criteria that any type of exchange must meet. States aren't free to set up their own exchanges unless they can explore options outside of those mandates, Rep. Burgess said.
President Obama has said he would veto the bill if it reaches his desk.
Read the Hill report on healthcare reform.
Related articles on insurance exchanges:
Short on Funds, States Explore New Ways to Get Exchanges Going