State Health Insurance Exchanges: The Final Stand Against Obamacare

While there have been secession petitions started in all 50 states after President Barack Obama was reelected making certain that Obamacare was not going to be repealed that is not the route that should be taken.  Nullification is.  The creation of State Health Insurance Exchanges are.  Friday is the deadline for states to decide whether or not they will create a health insurance exchange for their state.

South Carolina Governor Nikki Haley today reaffirmed her opposition saying South Carolina will not have a health insurance exchange.  She said these state exchanges are state-based in name only.  Haley said that “they simply pass along to the state the burdens of a new and cumbersome bureaucracy.”

Haley isn’t alone.  Indiana Governor-Elect Mike Pence rejected the idea.

In a letter to Gov. Mitch Daniels, Pence noted that he has reviewed his position in light of the recent election and his recommendation remains the same.

“I do not believe the State of Indiana should establish a state-based health insurance exchange because doing so will cost taxpayers millions of dollars and it is not clear that Hoosiers would benefit from incurring the cost of implementing this new federal healthcare bureaucracy,” Pence said in his letter.

He added, “Without knowing more details on the cost and nature of state-based exchanges, it is possible that our state could be placed in the untenable position of serving as the administrator of a new federal healthcare bureaucracy over which we have little control.”

Pence pointed to the uncertainty regarding cost and regulation of state-based exchanges, as well as the certainty of higher taxes and higher premiums for Hoosiers in his recommendation.

Pence also noted he remains opposed to a partnership exchange with the federal government and, “absent new information,” will make that known to the proper federal authorities by the deadline of February 16, 2013.

Nebraska Governor Dave Heineman opts for a Federal exchange rather than a state-based exchange.  Wisconsin Governor Scott Walker is unlikely to forward with it as well.  Alaska Governor Sean Parnell is saying no thanks.  You can see where your state is at here.

FreedomWorks notes that this is the last chance to stop Obamacare from being implemented.  The Feds can’t afford to do this without the states, and in the Affordable Care Act there is no requirement for the states to create these exchanges.  Basically FreedomWorks contends the formula looks like this:

No state exchanges = No mandates + No subsidies = Obamacare doesn’t work

FreedomWorks Vice President of Health Care Policy Dean Clancy in July laid out a plan for states utilize as they battle Obamacare:

1. States that have begun to set up health exchanges should stop.
2. States that have already approved legislation/funding for an exchange should rescind it.
3. States that have been offered money for exchange implementation should refuse it.
4. States that have received such money should, if possible, return it.

Will enough states stand up and exercise their 10th Amendment right to object and nullify Obamacare?  That remains to be seen.