To ‘Exchange’ or not to ‘exchange’

August 20, 2011 by  

Here’s the question:  Should states suing to overturn Obamacare in court be implementing the law at the same time?

The answer should be obvious – but some states, including Arizona, are “putting out the welcome mat” to the law by enabling a central part of the harmful and unconstitutional law.  In fact Arizona just applied for a $29.8 million establishment grant to accomplish this.    Obviously I oppose these plans and I’m not alone.  Click on the above Goldwater Institute piece by Diane Cohen and this one by John Graham: Health Insurance Exchanges.

What is an Insurance Exchange?:   Exchanges are the agencies through which half a trillion dollars in  subsidies will flow to eligible consumers and eventually to insurers and health plans which qualify under new Federal rules.  

Why would states do anything to jeopardize their case against Obamacare in court, much less lay down a major part of this bad law in state statute?   Read how the State of MO. rejects exchange legislation.  Here are 10  reasons others should not “exchange’:

1.  States are not required to do it.

2.  A state-run exchange will not make Obamacare any less harmful or any more “free market”.

3.  States don’t have the money.  Massachusetts’ “Connector” cost them $40 million last year.

4.  It will allow Obama to claim bi-partisan support for the law.

5.  It will become an Obamacare exchange even if states don’t want it to.

6.  Once it’s in place, it will make it harder to repeal the law.

7.  States will share responsibility for an unworkable new entitlement program.

8.  Like all government bureaucracies, it will grow and become more costly.

9.  States with Health Care Freedom laws will be actively denying their citizens its protections  by helping enforce the individual mandate.

10.  Again, it undermines the states’ court cases.

See what Americans for Prosperity is saying on the issue.

Whether or not states should set up exchanges was the hot topic at Legislative conferences this summer, including at the American Legislative Exchange Council’s (ALEC) annual meeting in New Orleans.  I proposed a model resolution against states setting up Obamacare exchanges.  It passed with overwhelming support.  Read the resolution here.  For more view Cato Institute’s Michael Cannon on FOX.


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