• The Heritage Network
    • Resize:
    • A
    • A
    • A
  • Donate
  • Accepting Federal Exchange Funding for Obamacare: A Dangerous Proposition for the States

    Right now, states across the country are trying to figure out what to do in response to Obamacare and its health insurance exchange architecture. In Oklahoma, the question has gone even further as the state government debates whether or not to accept federal funding, appropriated in the Obamacare statute, to create a state information technology system for a health care exchange.

    In Ed Haislmaier’s recent paper, he describes this dilemma:

    Trying to shoehorn patient-centered, market-based reforms into the bureaucratic architecture of Obamacare’s health insurance exchanges is not a viable strategy, either practically or politically. But refusing to create an Obamacare state exchange, while politically appealing, would leave state health insurance markets vulnerable to even more federal interference and disruption over the next two years.

    In addition, and at issue in Oklahoma, is whether states should accept federal funding to pursue state-based reforms. It would be prudent for states to think twice before accepting any federal funding from Obamacare. As history documents, once states accept funding from the federal government, they are forever at the mercy of the federal bureaucracy. States need to look no further than Medicaid to understand the dangers of this proposition. Moreover, at the federal level, conservatives in Congress are actively trying to repeal and defund Obamacare.

    State officials must take a leadership role in fighting back against Obamacare and must advance conservative, patient-centered, market-based health care reforms. As Ed Haislmaier said, “The best strategy for the state lawmakers is to adopt their own reforms – separate from, and independent of, Obamacare’s exchange design.” Acceptance by states of federal funds appropriated by Obamacare, to be used by the state for the purpose of implementing Obamacare, would be inconsistent with current congressional efforts to repeal and defund Obamacare.

    Co-authored by Robert E. Moffit.

    Posted in Obamacare [slideshow_deploy]

    3 Responses to Accepting Federal Exchange Funding for Obamacare: A Dangerous Proposition for the States

    1. George Colgrove VA says:

      To you states:

      As Nancy Reagan always said –

      "Just say no"

      Try this interpretation of that anti-drug comercial:

      "This is your state health care system" [The egg]

      "This is ObamaCare" [The hot iron pan]

      "This is your state healthcare on ObamaCare" [The egg is broken and drops into the hot iron pan in which it becomes fried]

      "Any questions?"

    2. mauderoof says:

      In fact, under new health care reform your health insurance company will no longer be allowed to cancel your policy if you get sick, we should be doing this already! search online "Wise Medical Insurance" it is a good place to find insurance if you have illness like me.

    3. Bobbie says:

      Just another obama angle… TRAP SETTER!

      NO FEDERAL EXCHANGES NECESSARY! Obama doesn't belong here, please remove!

    Comments are subject to approval and moderation. We remind everyone that The Heritage Foundation promotes a civil society where ideas and debate flourish. Please be respectful of each other and the subjects of any criticism. While we may not always agree on policy, we should all agree that being appropriately informed is everyone's intention visiting this site. Profanity, lewdness, personal attacks, and other forms of incivility will not be tolerated. Please keep your thoughts brief and avoid ALL CAPS. While we respect your first amendment rights, we are obligated to our readers to maintain these standards. Thanks for joining the conversation.

    Big Government Is NOT the Answer

    Your tax dollars are being spent on programs that we really don't need.

    I Agree I Disagree ×

    Get Heritage In Your Inbox — FREE!

    Heritage Foundation e-mails keep you updated on the ongoing policy battles in Washington and around the country.