What lies ahead for ObamaCare in 2013?
25 states reject health care exchanges
- Duration 6:28
- Date Dec 30, 2012
25 states reject health care exchanges
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Go back in 2014.
That's not surprising that some governors have decided not to have their states run health insurance exchanges it's under the president's controversial reform law.
Is how many.
25 states that's half the country are saying sorry mister president we're not gonna help you enforce this flawed piece of legislation.
One of the governor saying that is Georgia governor Nathan Deal who joins us now governor it's really a pleasure to have you here.
-- It's kind of surprising that 25 states half of the states in this country have said that they will not set up their own exchanges.
A what is the -- what was it that you and said I can't do this for -- it's just not gonna help us what was the deciding point.
I think the biggest deciding factor was that we couldn't get answers to questions that we -- were essential.
The Republican governors wrote a letter back in July.
To the secretary of HHS asking very specific questions.
Things that we needed to know in order to be able to decide whether or not to implement these exchanges at the state level.
We've basically got very few answers it -- -- A remarkably however in the last week suddenly regulations are pouring out of they.
Bureaucrats in Washington and the hundreds of pages problem but.
The bottom line is as you know having been a governor yourself.
That states that have to balance their budget such as of the state of Georgia.
We are struggling in this downturn economy to meet the obligations that we already -- with regard to health care particularly with regard to Medicaid.
To have an unknown cost factor thrust upon us is something that would be irresponsible in my opinion for us to listen.
And governor that's a point that a lot of people don't understand about Medicaid the federal government -- -- -- will take care of your expenses and setting up the exchange.
And making this big massive Medicaid expansion.
But states have to pay a portion and even if the feds pick it up for two years year three and beyond.
You're going to be in for.
Literally billions of dollars of new obligation for funding aren't you.
We have estimated it anywhere from two and a half to -- and a half billion dollars.
Over about a ten year period.
And we don't have any extra money like that lying around in our state and I don't think any other state does either.
So to assume any additional obligation.
Is a tremendous stay up and one that we don't wanna do because we -- pledge not to raise taxes in our state.
I know historically a lot of times governors were put in a tough spot the federal government would say if you don't implement new pieces of Medicaid.
Didn't will take the whole program away from the court's rules they can't do it this time.
Is that a part of what he's emboldened governors to act in their states that centrist rather than.
As they used to have to do almost whatever held hostage by the federal government.
Yes absolutely fortune that it -- US Supreme Court decision did say.
That the original portion of obamacare legislation would that would have mandated states to expand their Medicaid rolls could not be forced -- states so that's a good thing that was part of the ruling that -- we all applauded.
And I think you're seeing the same reaction with regard to.
Setting up state insurance exchanges you're seeing the same reaction with regard to expanding Medicaid populations.
It is a cost to the states and one that most of us just don't think we can afford especially.
Not knowing what the future cost to go to be.
The way these exchanges were gonna work governor is that.
The state can set its -- up the feds could come in and set it up there could be a hybrid.
When you say you're not gonna have one does that mean the feds will still come in and build one around you regardless of what your decision has.
That's the way the legislation reads.
And operas in the -- exactly what they would do I think the greatest intrusion into State's authority is actually bad responsibility this now being shifted to the federal government.
As you know states have insurance commissioners.
We have won this a constitutional officer and our state.
And this is traditionally been the role of an insurance commissioner the state level to regulate the business of insurance.
Here we have instead of the state legislature deciding what a benefit.
Mandate is going to be we have a federal bureaucracy deciding what that mandate is going to be -- And quite frankly what we -- seeing -- is that in order to be able to be listed on the exchange.
You're going to have to have policy provisions that satisfy the bureaucrats in Washington.
And they're only gonna be satisfied.
With Cadillac type plans.
Things that many employers.
And many states even for their own state employees.
Don't provide that many benefits.
That's going to be a huge cost factor that nobody is really talk that much about.
Now I think you're right it hasn't been discussed very much as I'm so glad you were able to be on because.
I think people don't understand that this is when the federal government is not only -- in your state for certain benefits but the cost of having to provide them.
And for the federal government economists say George that you're not going to be able to spend more money on.
Maybe education our highways because we've already spent your money for you.
That's really what this gets down to and that's why I think you and a lot of other governors have said no thank you.
We are having a tough time meeting our other obligations and as we see health care continued to go up in terms of cost.
We are already seeing the effects of -- -- because as you know there were certain provisions of the statute that have already taken effect.
And we are having to include extra millions of dollars in our state budget this year.
Just to cover those extra calls that have already been imposed upon us there -- state employee health benefit plan.
Well governor it's great to have you here and for making a very clear explanation as to why governors are saying.
You're just not gonna participate in that hope you have a great 2013.
Down in Georgia and look for to seniors and like last night.