The National Taxpayers Union, working with Republican State Senator Robin Titus (SD-17), has filed a lawsuit challenging the constitutionality of SB420, a law establishing a public health care option in Nevada by 2026.
The lawsuit targets Governor Joe Lombardo, Treasurer Zach Conine, NV Director of DHHS Richard Whiteley, Commissioner of Insurance Scott Kipper, and Executive Director of the Silver State Health Insurance Exchange Russell Cook as defendants.
The legislation, spearheaded by Senator Nicole Cannizzaro and passed on a party-line vote during the 2021 Legislative Session, mandates insurers to provide a public option through the state’s health insurance exchange at reduced rates for specific populations. Critics, including the National Federation of Independent Business, argue that the public option will increase health insurance rates and limit choices for individuals above the poverty line.
The estimated cost to Nevadans would be $77 million in the first year of implementation and $200 million in subsequent years.
The legal challenge asserts three violations of the Nevada Constitution, contending that the law lacked the required two-thirds majority vote for bills generating public revenue, grants unlimited discretion to state officials for unspecified use of state funds without legislative approval, and violates the separation of powers principle.
The lawsuit’s filing closely follows state officials submitting a waiver seeking federal funding to support the proposed public option program. Federal officials have a specified timeframe to evaluate Nevada’s application, which includes a public comment period.
In October of the previous year, Lombardo outlined plans to transform the Nevada Public Option into a Market Stabilization Program to enhance stability in the state’s health insurance market. Titus, also a licensed medical doctor, emphasized her commitment to improving healthcare access and expressed concerns about government over-regulation in the healthcare sector.
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