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CCHF Health Freedom eNews

July 11, 2012

President's Commentary

States say "No Way!" The federal government can't force states to comply with the Obamacare Medicaid expansion - a   $118 billion assault on state budgets. So says the U.S. Supreme Court two weeks ago in a 7-2 decision. 

Red State governors are now making quick use of their new-found power. Louisiana Governor Bobby Jindal has  announced, "we have not applied for the grants, we have not accepted many of these dollars, we're not implementing the exchanges."

Florida Governor Rick Scott  wrote in The Washington Times that Florida can't afford it, won't implement the Medicaid expansion or the government exchange, and as a governor who lived as a child in public housing, he is "committed to breaking the cycle of dependence on public assistance."

On Monday, Texas Governor Rick Perry sent a pointed  letter to U.S. HHS Secretary Kathleen Sebelius. See below. He will not implement the exchange or the Medicaid expansion. The exchange is nothing less than a federal takeover, he writes. 

Refusniks emerge. Fifteen states may refuse to expand Medicaid. More should. See list of states below. This is good news. The June 28 Supreme Court ruling reinforcing "state sovereignty" rights will ring ominously for years to come in the ears of big government advocates and would-be tyrants.

States must also refuse Obama's Exchanges. These federal takeover centers will be used for national registration of the health insurance status of citizens. To stop Obamacare and national health care, the state-based exchanges -- government website portals feeding private data into the Federal Data Services Hub for IRS enforcement  -- must never be created.

New SCOTUS questions are emerging. Who gave Roberts the "tax" rationale? And why did Justice Ruth Ginsburg flip? Almost no one is talking about it, but we are. Check out the answers in this month's CCHF Health Freedom Watch. If you haven't signed up to receive it,  click here before Friday, the day we will release our special SCOTUS RULING edition.

Now on to the news . . .

News to Know:

ROBERTS: Bad or Brilliant?

Two weeks have passed since the Supreme Court ruled the Obamacare mandate a "tax" and sent shock waves from Wasilla to the West Wing.  One writer in a  point by point overview says Roberts' "'reasoning' is thinner than unleavened bread" and filled with nine "inanities, inconsistencies and constitutional/statutory infirmities." But several conservative leaders are surprisingly pleased with the Roberts' ruling. For instance, Jack Tymann, a columnist for Naples Daily News and president of Westinghouse International, says Chief Justice Roberts "may  not be a goat but a hero  by siding with and negotiating the "best possible deal" with the court's liberals -- and putting the health care law and the President in jeopardy at the same time.

In short, Roberts limited the Commerce Clause for the first time since FDR's New Deal, ruled the mandate unconstitutional, got the liberal judges to "come clean and admit that Obamacare must be funded by tax increases," and "allowed states to refuse to play in Obamacare." By declaring it a tax, Roberts  made the law filibuster-proof empowering the U.S. Senate to repeal it with just 51 votes on a "budget reconciliation." Then he placed the power to undo it in the hands of the American people and the 2012 election. Find out who the other prominent GOP supporter is by  signing up to receive the monthly CCHF Health Freedom Watch. The special SCOTUS RULING edition will be emailed free to subscribers this Friday, July 13th.

National Registration of Insurance Status

Obamacare requires registration of health insurance status or payment of a penalty-tax. The national registration system will be comprised of the state-based federally-controlled website portals ("state exchanges"), the federal website portal ("Federal Exchange") and the Federal Data Services Hub which links it all together. The design specifications for "exchanges" are detailed in what can best be called a big blue book that is at least an inch thick (see photo below). Listed among the details is even the possibility of using the "exchanges" for Voter Registration.

Eight national and state health care foundations funded the effort that created the big blue book, and three federal agencies and 11 participating states were involved in the design process: Alabama, Arkansas, California, Colorado, Illinois, Massachusetts (with Rhode Island and Vermont in a consortium), Minnesota, Missouri, New York, Oregon and Tennessee. An additional four states joined for refinement of the design: Arizona, Kansas, Maryland and New Mexico. 

CCHF inquired about the voter registration section and unexpectedly learned that the executive-ordered MN Exchange office is trying to figure out how to pre-populate the exchange with a "master index" of the state's population. One possible source mentioned by Exchange staff for acquiring this data: the  taxpayer database at the MN Department of Revenue.

GOV. PERRY: Absolutely Not

Governor Rick Perry wrote HHS Secretary Kathleen Sebelius a  letter, which includes the following: "Now that the 'gun to the head' has been removed, please relay this message to the President: I oppose both the expansion of Medicaid as provided in the Patient Protection and Affordable Care Act and the creation of a so-called 'state' insurance exchange, because both represent brazen intrusions into the sovereignty of our state."

"The PPACA does not truly allow states to create and operate their own exchanges. Instead, it gives the federal government the final say as to which insurance plans can operate in a so-called 'state' exchange, what benefits those plans must provide, and what price controls and cost limits will apply. It leaves many questions to be answered later through federal 'future rulemaking.' In short, it essentially treats the states like subcontractors through which the federal government can control the insurance markets and pursue federal priorities rather than those of the individual states." In conclusion, Perry writes, "[T]he PPACA's unsound encroachments will find no foothold here." 

ONE National Exchange

The law does not require states to set up exchanges. Cost estimates are $10 - $100 million per year. For states that refuse, HHS must set up a federal exchange (FX). But Congress provided no funding for an FX. They assumed state compliance. Not so. HHS is therefore siphoning Medicare dollars to build the FX, according to Cato Institute's Michael Cannon  (CCHF's "soundbites" video at 2:21). Quoting the "Federal Exchange Statement of Work" document (2011) demonstrates HHS plans for a SINGLE federal exchange:

These requirements are for systems development and delivery of a federally operated Federal Exchange (FX). The Contractor's proposed solution shall be designed and developed to interoperate with the Data Services Hub and State Exchanges...

The Federal Exchange Program System (FEPS) consists of a FX that serves the needs of individuals within states where those states do not have their own state-run exchange, and the Data Services Hub (DSH), which provides common services and interfaces to federal agency information...

For this task order, CMS [Centers for Medicare and Medicaid Services] desires a Managed Services approach that will include the following: (1) Architecting and developing a Federal Exchange that may be used by any state that opts out of building and operating its own Exchange...

Re(fuse) States; Blue States

Dollars, politics, party and the 2012 election likely determine each state's response to the Obamacare ruling. On July 3, THE HILL  published the following list indicating which states will pursue the expansion of Medicaid under Obamacare. As Governor Rick Perry makes clear, Texas has moved from "leaning no" to absolutely "NO":


Undecided, Leaning YES: AR 

Undecided: AK, AZ, CO, DE, ID, KY, ME, MI, MT, NH, NJ, NM, NC, ND, OH, OK, PA, SD, TN, UR, WV, WY

Undecided, Leaning NO: AL, GA, IN, MS, MO, NV, TX, VA


Stats of the Week:

Senate Republican Policy Committee, July 10, 2012


News Release of the Week:

State Health Insurance Exchanges Compromise Patient Privacy, Provide Federal Agencies Broad Control over Health Care

ST. PAUL, Minn. - Now that the Supreme Court of the United States has ruled the Patient Protection and Affordable Care Act (PPACA) mainly constitutional, primary components such as health insurance exchanges are being pushed at the state level. But implementation of these exchanges creates new and lasting challenges, adding $340 billion to the nation's deficit and creating $17 trillion in long-term, unfunded liabilities that will burden the already floundering economy. Perhaps even more disturbing is the intrusion into patient privacy that these exchanges allow.

"Many Americans do not recognize the governmental overreach of power that implementation of the state and national healthcare exchanges creates," said Twila Brase, President of the Citizens' Council for Health Freedom. "But once these web portals to the federal government are created and implemented, they will be very hard to dismantle, and the control they exert over insurance and medical delivery, and the access they allow to individual data is disturbing. These portals provide five major government agencies access to personal information. They are not the one-stop-shopping "marketplaces" that they have been described to be."  Continue reading

Featured Health Freedom Minute:

Robert's Verbal Wizardry

Welcome to the third broadcast this week on the Obamacare ruling. I have read the scathing dissent of Justices Scalia, Kennedy, Thomas and Alito. The four charge Roberts with invented interpretation, judicial usurpation, judicial tax-writing and my favorite, "Verbal wizardry from the forbidden land of the sophists." In other words, elaborate and devious argumentation.  Continue reading

Twila Brase broadcasts a daily, 60-second radio feature, Health Freedom Minute, which brings health care issues to light for the American public. Health Freedom Minute airs on the entire American Family Radio Network, with more than 150 stations nationwide in addition to Bott Radio Network with over 80 stations nationwide.

Click here to listen to this week's features.


Citizens' Council for Health Freedom
161 St. Anthony Avenue, Ste 923
St. Paul, MN 55103
Phone: 651.646.8935 • Fax: 651.646.0100

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