U.S. Rejects Obamacare Work-Around Sought by Republican States

A health insurance venture that threatened to erode Obamacare and had the backing of seven Republican state attorneys general has been rejected by the U.S. Labor Department.

The proposal, from an obscure company in Georgia that was the subject of a Bloomberg News article last month, won the support of states including Georgia and Louisiana, whose attorney general personally pitched it last year to senior White House officials. Among those pushing for the plan was a Washington lobbying firm whose senior adviser is Corey Lewandowski, Donald Trump’s onetime campaign manager.

The initiative would allow LP Management Services to ...