The Affordable Care Act, or "Obamacare", is a clear representation of governmental overreach and demonstrates how the federal government circumvents The United States Constitution to achieve the goals of their short-sighted and expensive policies, which will cripple our state's economy and compromise the health and well-being of our citizens.
It is important that we understand the consequences of Obamacare. It's not just that Obamacare is bad policy, though it is true that health insurance premiums are rising, while coverage is dropping. What's worse, it has transformed the relationship between the government and the governed. The federal government has coerced the states to choose between bad and worse options, and has arrogated to itself the power to tell citizens what to buy and when.
The creators of Obamacare knew that our government could not force states to establish exchanges. Establishing a state exchange would commit Indiana to increased and unnecessary spending to support Obamacare's bad healthcare policies. Indiana chose not to. Knowing we would refuse, a Democrat Congress specified that credits and subsidies would only to be available in states that set up their own health-insurance exchanges. This was the carrot.
And they also had a stick. The IRS is enforcing tax penalties in all states that have (rightfully) declined to create their own exchanges. They will send the penalty fees paid by private insurers to Washington to pay for subsidies provided by the federal government to individuals purchasing health insurance through their exchanges. These penalty fees are expected to increase to $14.3 billion by 2018. In addition to increased taxation, as a further punishment for Indiana not complying with Obamacare, Hoosiers are now limited from their basic, previous Medicaid programs.
Indiana and nearly thirty states are battling the government's imposition of taxes and penalties for refusing to establish a state health-care exchange. If the courageous legal efforts by the majority of states are successful in defeating the Obama administration, deficit spending associated to Obamacare is estimated to be reduced by approximately $700 billion over the next decade. More important, we can start to reclaim our rightful place in our constitutional republic.
We must stand strong and fight for the restoration of the balance of power envisioned by the Founders. With your support, as your next Attorney General, I will work hard to assure that Indiana is protected from such blatant abuses of our government's executive power.