Half of U.S. States Refuse Insurance Exchanges, Pose Threat to Obamacare
Kyle Becker | On 18, Jan 2013
The Daily Caller has published a report that suggests that Obamacare is under serious threat, due to half of states refusing to establish healthcare exchanges. The article suggests a pressure point for the massive healthcare program that could send the legislation back to the Supreme Court.
The Obama administration waived a deadline for the states to establish health insurance exchanges, as mandated under the Obamacare program. John Davidson of the Texas Public Policy Foundation says this should not be taken as a sign of the government being ‘flexible,’ but as a sign of desperation:
The announcement is in fact an attempt by the administration to shore up the health care law’s inherent weaknesses and to cajole states into enacting a federal scheme. Contrary to what the feds now claim, the latest and most glaring weakness of Obamacare is that it was crafted to depend on states to establish health insurance exchanges. These exchanges are meant to be the vehicles for the distribution of tax credits and subsidies to buy qualified health insurance plans.
If a state refuses to set up an exchange, and so far 25 have refused, the federal government must step in and create one. However, the law does not authorize tax credits and subsidies to flow through federally created exchanges, only those created by states. An Internal Revenue Service (IRS) rule issued in May 2012 attempted to fix this problem — initially dismissed as a “drafting error” — by extending credits and subsidies to federal exchanges and so-called “partnership exchanges,” which a number of states have indicated they will adopt.
If massive centralized programs like Obamacare are to be successfully fought, they must be opposed at the state level. If half the states in the United States are opposed to Washington’s corrupt, power-grabbing policies, they must ally together to counter-balance those policies.
The United States was never set up to be a uniform nation with a central government. The scope of the federal government’s authority was intentionally limited, because citizens and the states in the republic have diverse interests. It’s time for Washington politicians to get out of our healthcare and out of most aspects of our lives.