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November 13, 2012

ALG urges Governor Snyder not to implement Obamacare exchange

Nov. 13, 2012, Fairfax, VA—Americans for Limited Government President Bill Wilson today urged Governor Rick Snyder not to implement a state-run health insurance exchange under Obamacare.

In his letter, Wilson wrote that the governor “hold[s] the fate of President Obama’s Affordable Care Act, also known as Obamacare, in your hands,” noting that if the exchange is not implemented by Snyder, employers in the state will be protected from the law’s employer mandate.

“Without the cost burdens imposed by the state exchange, your employers will enjoy a significant competitive advantage over their competitors in states which have exchanges,” Wilson wrote.

The letter references a study by the Cato Institute’s Jonathan Adler and Michael Cannon, “Taxation without representation: The illegal IRS rule to expand tax credits under the PPACA.”

In it, Adler and Cannon make the case that “An Internal Revenue Service (IRS) rule purports to extend these tax credits and subsidies to the purchase of health insurance in federal exchanges created in states without exchanges of their own. This rule lacks statutory authority.”

The study explains, “The text, structure, and history of the Act show that tax credits and subsidies are not available in federally run exchanges. The IRS rule is contrary to congressional intent and cannot be justified on other legal grounds.”

By not implementing the exchange, the state would effectively give affected employers the standing to sue against the new IRS rule, Wilson said in a statement.

“It is up to Governor Snyder to at least give employers a chance of fighting against Obamacare. But if the exchange is implemented by the state, they will not have any chance at all,” Wilson concluded.

Source: Press Release

 


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