Health Care Reform Hypocrisy: States Suing Government Willing To Claim Subsidies From Law
WASHINGTON — More than half a dozen states suing to overturn President Barack Obama's health care law are also claiming its subsidies for covering retired state government employees, according to a list released Tuesday by the administration.
About 2,000 employers have been approved for the extra help to cover early retirees, mainly private businesses. But the list also includes seven states suing to overturn the health care overhaul as an unconstitutional power grab by the federal government.
The seven are Arizona, Idaho, Indiana, Louisiana, Michigan, Nebraska and Nevada.
They are part of a group of 20 states that have challenged the law's requirement for most Americans to carry health insurance or face fines from the IRS. They argue that government cannot order individuals to buy a particular product. The administration counters that the mandate falls within broad powers conferred on Congress to regulate interstate commerce.
A spokeswoman said Indiana's Republican Gov. Mitch Daniels disapproves of Obama's overhaul, but will take advantage of specific provisions that benefit his state.
"Congress approved health care reform and the president signed it into law. Gov. Daniels does not agree with it, but Indiana will seek funds that help Hoosiers when there are no complicated strings or costs attached," said press secretary Jane Jankowski.
The list of employers who have expressed an interest in the subsidies includes about half the Fortune 500 companies, as well as state and local governments, educational institutions, unions and nonprofit organizations, the administration said. A total of 16 states have been approved, and more are expected to apply.
As medical costs soared in the last 20 years, employers have dramatically scaled back retiree health coverage. The share of large companies providing the benefit dropped from 66 percent in 1988 to 29 percent last year.
"Not only has this coverage disappeared, but individuals between 55 and 64 who are pre-Medicare are really struggling with the private health insurance market," said Health and Human Services Sec. Kathleen Sebelius. "This is one of the most vulnerable populations." Insurers usually charge older adults several times more than what people in their 30s and 40s pay.
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