New York is sending a clear message to its health insurance plans: Stick with Obamacare’s insurance marketplace — or else.

The state announced Monday that it will bar insurers who quit the marketplace from bidding for future contracts with New York health programs. That’s a big deal: 6.4 million New Yorkers have Medicaid coverage, making those contracts lucrative opportunities that health plans won’t want to miss out on.

I wonder how many years it will take for politicos in New Mexico to stand up on their hind legs and back working folks, this way. Our state has a higher percentage of children born under Medicaid than anywhere else in the United States.

New York already has a competitive marketplace, so it’s not clear how much this step will matter. The state hasn’t had trouble attracting insurers to its marketplace in the way other states have. Every New York county had at least two plans signed up to sell coverage in 2017…

This type of provision would be a lot more meaningful in a place like Missouri or Iowa, two marketplaces badly in need of more competition. New York isn’t likely to struggle with empty Obamacare counties regardless…

New York isn’t the first state to tether Medicaid contracts to marketplace participation…Nevada has a similar regulation on the books. That state gives preference to health insurance plans that want Medicaid contracts if they also sell on the state marketplace.

The provision seems to have been successful in convincing two additional health plans to participate in the Nevada Obamacare marketplace. Medicaid is a lucrative enough program, it seems, that states can use it as a lure to bring insurance plans into other smaller programs like the marketplace…

If you run away – then stay away!