States Should Flatly Reject ObamaCare Exchanges

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Here are just a few reasons why states should refuse to create ObamaCare Exchanges.

Jobs. Refusing to create an exchange will block Obamacare from imposing a tax on employers whose health benefits do not meet the federal government's definition of "essential" coverage. That tax can run as high as $3,000 per employee. A state that refuses to create an exchange will spare its employers from that tax, and will therefore enable them to create more jobs.

Religious freedom. In blocking that employer tax, state officials would likewise block Obamacare's effort to force religious employers to provide coverage for services they find immoral — like contraception, pharmaceutical abortions, and sterilization.

The federal debt. Refusing to create exchanges would also reduce the federal debt, because it would prevent the Obama administration from doling out billions of dollars in subsidies to private insurance companies.

The U.S. Constitution. The Obama administration has indicated that it might try to tax employers and hand out those subsidies anyway — even in states that don't create an exchange, and even though neither Obamacare nor any other federal law gives it the power to do so. If that happens, the fact that a state has refused to create an exchange would give every large employer in the state — including the state government itself — the ability to go to court to block the administration's attempt to usurp Congress's legislative powers.

A lower state tax burden. States that opt to create an exchange can expect to pay anywhere from $10 million to $100 million per year to run it. But if states refuse, Obamacare says the federal government must pay to create one. Why should states pay for something that the federal government is giving away?

Bye-bye, Obamacare. That is, if the feds can create an exchange at all. The Obama administration has admitted it doesn't have the money — and good luck getting any such funding through the GOP-controlled House. Moreover, without state-run exchanges, the feds can't subsidize private insurance companies. That by itself could cause Obamacare to collapse.

Michael F. Cannon is the director of Health Policy Studies at the Cato Institute. Video Produced by Caleb O. Brown and Austin Bragg.

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[darnokish]

So, because someone you don't agree with funds the Cato Institute everything they say is wrong? I'm sorry but this is so childish and completely irrelevant to anything. Argue the facts.

[jaceepc]

@plasticiconoclastic - So what if the Koch family supports or is part of or had many connections with the Cato Institute? Last I looked - it wasn't a crime for foundations to give money to their favorite causes.

[trilintia]

Honestly alot of the problem occurs from lawsuits and people abusing ER. I think several things could be done create a board of doctors in each state. If they rule that doctor had no wrongdoing. Throw lawsuits out the frivolous nature of lawsuits in healthcare are killing it. Then add the fact that many people go to ER often undocumented with no ID and use the service but do not pay is a issue. States should refuse as government has no right to pass legislature that should be state level.

[DaBearsManiac]

Lol first off, what's so sinister about the Koch brothers? Please let me know.

[hobo59]

Irregardless of what the states are doing. If you're a kid under 30 years old you better get ready to bend over and take it like a woman ! In January you will first be required by law to have health Insurance and if you don't you will be fined/taxed/ penalized by the IRS. BTW You'll be paying an extra 20% to cover the cost of those who are 50 and older ! Of course you could always quit your job and go on welfare thus you'll get minimal health insurance provided by the Federal Gooberment !

[supercooltunes1]

Great video - educational! I'm so glad that Gov Deal (and many other Republican governors) have called Obama's bluff on the Exchanges!

[supercooltunes1]

You fix the ER situation by CLOSING THE BORDER and clamping down on undocumented-worker employment with very harsh penalties and enforcement thereof.

[stopspending4]

If you do not pay your bill, don't the health care providers take a loss - ie: write the expense off of their taxes- thereby not paying as much tax which in turn requires others to pay more to fund all the wasteful spending by the gov?

I am not in favor of OBamacare but also not sure how to pay for all those that run to the ER when they have a headache.

[stopspending4]

I don't like Obamacare even though it would probably help me. But I have some questions about not creating the state exchanges. Won't that just allow the Fed to go to a single payer - Fed- heath care program? The idea that the fed would not have the money to fund fed exchanges seems short sighted since the Fed wil just add taxes to pay for these exchanges. Isn't that what the progressives want? They can tax companies to pay for all these exchanges.

[bb152005]

We do. You do not pay for my health care if I go to the hospital, even if I don't pay for it. That is just a lie to get you backing Obamacare. Our tax money goes to pay for people on medicaid and medicare if they get sick. If I go to the doctor then the bill is given to me to pay in payments. If I do not pay it, then the hospital sells off my bill to a collection agency, and they call me to collect. You libs need to freaking learn some shit. I've worked in health care.