In response to questions from members of chambers of commerce around the state, Gov. Butch Otter this morning said the state recently had news from the feds that Idaho insurance companies actually would be able to participate in a federally operated insurance exchange, if the state doesn't set up its own. "The resistance in the Legislature I fully understand, because they're saying no matter what we design in Idaho, if it doesn't comport to what the federal government wants, well then, why don't we just let the feds come in and put it over," Otter said.

"Up until  three weeks ago we were under the impression ...  that if we don't design our own, then our state-based insurance, those that are indigenous to Idaho, companies, primarily the big three, the Blues and Pacific Source, would not be able to participate in the insrance exchange. About three weeks ago we got a letter that said that is not exactly right. Even with a federal exchange, you could have your companies in Idaho participating in that federal insurance exchange."

Otter said, "We were concerned about whether or not they would be able to participate. We've been told, or at least indicated in a letter, that it's not automatically exclusive of our state-based insurance companies. But once again my whole effort there was to preserve every option for the Legislature to consider."

Otter hinted that a different approach now is being considered on the insurance exchange issue.  "I believe we have some other options - I'm not at liberty to tell you those right now," he said. "I do have Bill Deal and Dick Armstrong working on some options, that's probably outside the Affordable Health Care (bill) box. ... Maybe it's something that they hadn't thought of when they created that monster."