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Tipsheet

Obama's Insurance Exchange Nightmare

When the Supreme Court upheld ObamaCare as a tax last summer, President Obama may have thought he could breathe a little easier. But now with the implementation of the law, Obama is just beginning his war with the states that refuse to implement ObamaCare exchanges needed for the legislation to work properly or at least, quickly.

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The Obama administration faces major logistical and financial challenges in creating health insurance exchanges for states that have declined to set up their own systems.

The exchanges were designed as the centerpiece of President Obama’s signature law, and are intended to make buying health insurance comparable to booking a flight or finding a compatible partner on Match.com.

Sixteen states — most of them governed by Republicans — have said they will not set up their own systems, forcing the federal government to come up with one instead.

Another five states said they want a federal-state partnership, while four others are considering partnerships.

It's a situation no one anticipated when the Affordable Care Act was written. The law assumed states would create and operate their own exchanges, and set aside billions in grants for that purpose.

Essentially, states denying the exchanges forces the feds to do the work, as they should considering it is a federal law that balloons state budgets.

The work of beginning to implement the exchanges comes just in time for the fiscal cliff. Speaker John Boehner and Majority Leader Eric Cantor have hinted ObamaCare may be on the table as a negotiating piece for a deal.

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The president’s health care law adds a massive, expensive, unworkable government program at a time when our national debt already exceeds the size of our country’s entire economy. We can’t afford it, and we can’t afford to leave it intact. That’s why I’ve been clear that the law has to stay on the table as both parties discuss ways to solve our nation’s massive debt challenge.

Meanwhile, the majority of Americans still despise ObamaCare and want it repealed.

Fifty percent (50%) of Likely U.S. Voters favor repeal of President Obama’s national health care law, while 44% are opposed to repeal, according to a new Rasmussen Reports national telephone survey.

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