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7 States Suing Feds Also Seek Health Subsidies

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7 States Suing Feds Also Seek Health Subsidies

Seven of the states suing the Obama Administration over its health care reform law are benefitting from monies provided under the new law.

Twenty states are suing because they say the law, which requires individuals to have health insurance, is an attempt by the federal government to overreach its authority.

However, seven of those states -- Arizona, Idaho, Indiana, Louisiana, Michigan, Nebraska and Nevada -- are also receiving money provided under the new law to cover health care costs of retired state employees, and six of the states are headed by Republican governors.

Maybe the heads of these states should listen to William Shakespeare who said, "It is a good divine that follows his own instructions."

How hypocritical is it to sue regarding a law on one hand while collecting money from that same law on the other hand?




Under the health care measure, the federal government provides funds to private corporations and state governments to help fund expensive retiree care. Approximately half of Fortune 500 companies have expressed interest in the program while 16 states have been approved to participate.

The AP writes:

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. To try to hold off a steeper drop, the health care law provides $5 billion to help employers maintain coverage for early retirees age 55 and older but not yet eligible for Medicare.

The government subsidy amounts to 80 percent of medical claims between $15,000 and $90,000 - significant assistance to help cover high-cost retirees and eligible family members.Companies can use the federal money to lower their own costs, or pass on the savings to their retirees through lower premiums and reduced cost sharing. Firms that receive federal help have to formally notify their retirees that they've gotten a subsidy.

"In these tough economic times, it is difficult for employers to keep up with skyrocketing health care costs for employees and retirees," Health and Human Services Sec. Kathleen Sebelius told the AP. The program "will make it a little easier for employers to provide high-quality health benefits to their retirees," she added.

If these states think the federal government is overreaching its authority, then it should just fund its own retiree health care costs. The law is designed to provide as many people as possible with health care coverage. Obviously, these states agree that this is an important goal.

This behavior reminds me of those in the Tea Party who criticize "government handouts," such as unemployment insurance and Social Security, but partake of those benefits themselves.

If we live long enough, we'll all wind up on government health care. It's called Medicare. That program is popular for a reason. I don't think most of the folks at these Tea Party events can afford to pay for the cost of a hip replacement or angioplasty out of pocket.

You can't have it both ways. If you think Social Security is a government handout, then maybe you should decline yours. And if unemployment is making people lazy, then maybe the industrious members of the Tea Party should not apply for it. And if health care reform is a bad idea, don't take money provided under the legislation.

Instead of pretending to restore honor to America, I wish some people would just cut the hypocrisy and restore honesty.

 

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