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Kentucky’s new Republican administration is moving forward with plans to shut down the state’s health insurance exchange, becoming the first state to cut ties with one of the key pieces of President Barack Obama’s signature health care law because of a political promise. Gov. Matt Bevin notified federal officials in a letter dated Dec. 30 that the state exchange will cease operations “as soon as is practicable.” That will be at least a year from now, according to federal law. It will not affect health plans sold for 2016. (Beam, 1/11)

In a statement Monday, Bevin’s office said he had taken steps to eliminate the “redundancy” of Kynect. He previously had pledged to shut down the exchange because “it adds no value” given the existence of HealthCare.gov. The former Democratic governor, Steve Beshear, had urged Bevin to maintain the exchange, noting that it is financed through a surcharge on insurance plans. Shutting Kynect would cost at least $23 million in state money, Beshear said. (Sun, 1/11)

The decision drew immediate fire from health care advocates, including Bill Wagner, executive director of the Family Health Centers, a network of public health clinics in Louisville. "It's a great disappointment," Wagner said. "It's an unwelcome setback in our efforts to reach the number of uninsured people and improve access to health care in Kentucky." (Yetter, 1/11)