State HIX Options 'Ironic from Both Sides'

"We had all of the 'I's dotted and 'T's crossed. But obviously, without the support of the governor and his perceived lack of support from the new legislature that will be sworn in,  there is no point in trying to move forward on something I can't deliver on. So, we are not moving forward."

Praeger says she and insurance commissioners in other states have expressed concerns about "abdicating" so easily the regulatory authority that states have fought for and crafted for so many years.

"It is a concern because traditionally over the years we have advocated and protected the ability of states to regulate all lines of insurance," she says. "Now what some states are doing, ours included, is abdicating that right and saying 'We don't want to regulate. We want the feds to do this.' Is that a slippery slope we are going down? Are we going to lose the ability to regulate other areas?"

"These states that are not moving forward (on exchanges) are major states' rights states, and yet we are abdicating to the federal government the right of the state to regulate itself," Praeger says.