12.11.2012 in Big Government, Featured, ObamaCare, Politics by Rick Manning 5

Momentum grows against Obamacare provision

By Rick Manning — Momentum continues to grow against state implementation of a key element of the Obamacare health law as Tennessee joined 22 other states in refusing to establish a state health care exchange.

Every state that has announced a decision since the U.S. Department of Health and Human Services extended an original deadline to December 14 has chosen to reject enacting a stand-alone state health exchange.

Small government groups like Americans for Limited Government have hailed these rejections saying they, “give employers in their state a fighting chance against Obamacare.“

The Cato Institute, a libertarian think-tank, released a legal analysis of Obamacare arguing that without the state health care exchanges, the federal government is not given the authority to impose penalties on employers found to have violated the law.  Citing Congress’ failure to give federal health insurance exchanges the authority to find an employer in violation of the law, Cato argues that this statutory failure requires Congress to revisit the issue if the federal government wants these expanded enforcement powers.

Subsequent to passage, the Obama Administration has attempted to solve this legal problem by simply having the Internal Revenue Service declare that they are enforcing the law regardless of what the statute actually says.

The issue becomes important as employers in states without state health insurance exchanges will have legal grounds to fight any enforcement action levied against them by the IRS, whereas, those in states with state exchanges are stuck with the law.

Bill Wilson explained, “The competitive advantage to employers in states that reject state health insurance exchanges is obvious as they will most likely be found to be exempt from enforcement of Obamacare in federal court, essentially being opted out of its costly and ill-conceived requirements.”

Under Obamacare, state health exchanges were created to provide both a clearinghouse of health insurance information in that state, and to trigger enforcement of the law against employers.   In states where a decision is made to not spend the money, time and effort to create a health exchange, the federal government takes on that role, so the health insurance clearinghouse will exist under either circumstance.

In recent weeks, a number of companies have announced plans to limit their workforce to working fewer than the Obamacare proscribed 30 hours a week, in order to protect themselves from facing massive health care cost increases under the law.

The states of Arkansas, Florida, Iowa, Idaho, Michigan, Pennsylvania, Utah and West Virginia are still considered to be undecided on whether to implement a state exchange.

Rick Manning is the Director of Communications for Americans for Limited Government.

  • http://www.facebook.com/people/Erik-Osbun/100001215333702 Erik Osbun

    22 states have now rejected state run insurance exchanges.

  • http://www.facebook.com/jwatersphd James H Waters Phd

    ah, yes, Rick. Let’s cheer on those who do not want to do anything about the problem of the uninsured, pre-existing conditions, and all the rest of the crap we have now . . . this is exactly why the right wing and tea party have lost credibility – say no to everything that would help, everything is just fine. then, when something is finally worked out, even if it’s far from perfect, continue to fight it. tomorrow, i suppose, we’ll be treated to one of your blogs to tell us that global warming is not happening. you guys are becoming the North Korea of the political world, increasingly marginalized and only interested in preservation of a status quo in which you have a stake.

  • Erik

    It’s educated morons like yourself that have steered this country to the pitiful state it’s in today! Far from perfect? Did you say far from perfect? In relation to your Phd (if it is indeed real?) it’s not worth the paper it’s written on when it comes to your critical thinking abilities! You sir are part of the vast majority of brainwashed Americans that are sleeping as our country slips away from us!

  • Emme

    and ps to mr. Phd: zero care (ocare) is not about healthcare–it never has been! It’s another sneaky way to hire more gov employees, take more from hard working, already drained Americans, and provide more for mr. And mrs. Antoinette! More trips, more golf, more Trees in the whir house ar Christmas, more money to other countries that love to hate us, more chances for trillion dollar spending and debt, while the people who couldn’t afford healthcare still won’t have it, they won’t have food or shelter either, but hey, until this country stops letting the people who aren’t producing and are just takers, vote, there are now more of them than makers–the USA is doomed! The takers don’t want to work. Even gov. workers don’t want to work! If you don’t believe me–consider this–why I got three pieces of mail the first week of December that were mailed in Oct.–three were bills and one was a political mailing for the Republican side–any questions!

  • Mike H

    I deliver medicine to a LOT of doctors and hospitals!! Not one SUPPORTS OBAMACARE-NOT ONE!! Can you explain that?????!!!!

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