Tuesday, July 10, 2012

Catron: The States Can Still Kill Obamacare

In his 7/9/2012 OpEd at American Spectator, David Catron discusses how, "The States Can Still Kill Obamacare".

Basically, ObamaCare relies on the state-run "exchanges" for consumers to purchase their mandatory insurance (if they don't receive it through their workplace). But states aren't required to establish the exchanges.

The federal government can set up its own exchanges, in theory, but Obamacare stipulates that Washington would then be required to pick up the tab as well. And, as [Cato analyst Michael] Cannon goes on to point out, "The Obama administration has admitted it doesn't have the money -- and good luck getting any such funding through the GOP-controlled House."
And it gets worse. If the federal government is forced to set up an exchange, it faces yet another huge problem. As Sally Pipes and Hal Scherz write, "The text of the law stipulates that only state-based exchanges -- not federally run ones -- may distribute credits and subsidies."
Thus, if a state refuses to set up an exchange, the feds have no real ability to do so either. The states have an opportunity, therefore, to shoot a poison arrow directly into Obamacare's Achilles' heel...
(Read the full text of "The States Can Still Kill Obamacare".)

Some states are already adopting this strategy.

But as Catron reminds us, ultimately the best way to kill ObamaCare will be at the ballot box in November.

Update:  David Catron notes that Texas has joined the list of states opposing ObamaCare in this fashion.