Rick Perry wrote an op-ed explaining why the state of Texas will refuse to accept additional Medicare money and refuse to setup their own state run insurance exchanges. Rick Perry and the state of Texas is not the only state doing this. Governors in Louisiana, Florida, Wisconsin, and Mississippi have made similar announcements. While many conservatives are viewing this ‘revolt’ as a victory and a way to defeat Obamacare even if it remains on the books, what they don’t realize is that it will have little effect and it is actually giving President Obama exactly what he wants.
So why is this what President Obama wants? Simply put, a states refusal to implement their own health insurance exchange does not stop exchanges from being implemented. The federal government will pick up the slack with their own exchange. By not implementing their own state exchange, these Governors are actually limiting competition and will increase the power and scope of the federal exchange. Instead of 1 federal exchange, plus 50 state exchanges, if enough states just don’t setup their own exchange, we could end up with one very large and overwhelming federal exchange that covers everyone. I think that is exactly what President Obama wants to happen.
These Governors are falling into President Obama’s trap and they don’t even know it. Maybe they are confident Obamacare will be overturned. Without a replacement plan in place though, I am still betting that Obamacare being repealed is a hopeless dream for many people.