In An Effort To Repeal Obamacare, States Become The Plaintiffs

Once the newly elected lawmakers are sworn into office in early 2011

, many states will shift their position on health care lawsuits, and join the growing number of states who have already filed or plan to file suit against the reform package.

The fight to repeal Obamacare has become a priority for states for a number of reasons. One of these reasons is because of Medicaid Expansion. In a recent Florida case, the issue of "coercion and commandeering as to Medicaid" was brought to light, even though it took a backseat to the major issue of the individual insurance mandate.

The Medicaid expansion was designed so that states will work with the federal government to provide more subsidies for the growing number of people who now qualify for the Medicaid program. The provisions for this issue that have been set forth in Obamacare are actually quite similar to a modification of the contract. This means it will actually kill the contract that was originally designed by the government in 1965 when the program was first implemented.

Under the new laws, the expansion will allow millions of new people to join the program, increasing the cost of Medicaid to states significantly. It would also mandate that states must pay for medical coverage for those who fall below the poverty line; this could single handedly break the budgets of those states already struggling to meet claims.

Another major issue that is prompting states to undo Obamacare is Health Care Exchanges. This is another "cooperative" part of the plan, and requires states to establish a health care exchange. The state of Florida said the terminology used in this portion of the act violated the "anti-commandeering rule"; however the judge dismissed this claim. That being said, future state suits could file under a different argument that does not use the anti-commandeering rule as a basis. This is because the states sovereignty is being compromised because the establishment of the exchange is mandated, not voluntary.

While many states will be taking legal action against Obamacare in the upcoming months, many will face good battles. Those hoping to repeal Obamacare all together, expect that judgment will rule in the favor of the states, and that the Constitution will not be further violated.

by: Dominic Lin

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