Boneham supports hybrid health exchange for Ind.

INDIANAPOLIS (AP) - Libertarian gubernatorial candidate Rupert Boneham called Friday for Indiana to adopt a hybrid health exchange, allowing the state to maintain some control over insurance-buying decisions while leaving more of the cost with the federal government.

Boneham wrote in a letter to Gov. Mitch Daniels that he initially favored a state-run exchange to administer the federal health care law, but chose a joint venture with the federal government after reviewing other states' plans and meeting with the governor's staff.

"In a hybrid exchange, Indiana would retain control over plan management and customer assistance," Boneham wrote Friday. "The major financial burden in a health exchange comes from the processing and reinsurance of Medicaid and CHIP (Children's Health Insurance Plan). Under a hybrid exchange, some of those costs can be deferred back to Health and Human Services."

Daniels has until Nov. 16 to let federal officials know what Indiana will do. Last month, Daniels sought the advice of the three candidates for governor on whether to create a state-run plan or enter into the federal plan. He said earlier this week he would submit the plan authored by the candidate who wins in November.

Republican Mike Pence said Wednesday the state should not create its own exchange and again argued for the repeal of the federal health care act. Boneham criticized Pence's proposal Friday.

"There are some who are suggesting that we sit on our hands and do nothing to just let the federal government run the exchange," Boneham wrote. "I do not believe Hoosiers would be supportive of handing over our state's authority and responsibility to the whims of federal agencies and bureaucracies."

A spokeswoman for Pence did not respond Friday to Boneham's criticism.

Democrat John Gregg has yet to say whether he would approve a state exchange. He said Thursday he plans to meet with Daniels soon.