Why business leaders should oppose an ObamaCare Exchange in Arizona

| November 18 2012
Christopher Cook

Obamacare exchange: 

State-based entity through which self-insuring individuals must purchase their government-approved insurance, and through which many small business employees will be forced to get their insurance due to Obamacare’s costly rules for employer participation.

Fact 1:  Arizona is under no obligation to create an Obamacare Exchange.  

The Supreme Court has rules that states have a choice; they are not required to create an exchange.

Fact 2: An Exchange in Arizona would raise taxes and kill jobs

  • The IRS would be able to impose a $2,000/worker tax on employers and, in certain cases, a$3,000/worker tax.
  • Individual families would have similar penalties and taxes imposed upon them.
  • Arizona would lose businesses to states that do not have an exchange, taking the jobs with them.
  • If Arizona does not create an Exchange, businesses will relocate to AZ from states with an Exchange, bringing jobs with them.
  • Support for the Exchange is coming from insurance companies who stand to gain from Exchange subsidies (crony capitalism at its worst).

Fact 3:  An Exchange would not give Arizona greater control over health care

The Federal government would have near total control of an Exchange, with the Secretary of Health and Human Services having the power to . . .

  • impose on state-created Exchanges “such…requirements as the Secretary determines appropriate.”
  • approve or deny all state-created Exchanges.
  • prevent states from passing laws “that conflict with or prevent the application of regulations promulgated by the Secretary.”

Fact 4: An Exchange would cost Arizona unnecessary tens of millions

  • Some estimates place costs to states for Exchanges at $100 million annually.
  • With no Exchange in Arizona, the Federal government will have to pick up the cost of Obamacare in Arizona

Fact 5: Lack of information

  • In spite of dozens of requests from state officials, the HHS Secretary refuses to provide vital information about how Exchanges should be formed. Why are they hiding this information?
Fact 6: 
  • There is no rush to form an exchange; the November election may change Obamacare or cause its complete repeal. Why expend state resources now?
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