Attempt by Idaho lawmakers to opt out of federal health care reform could prove disastrous for the state

Riddled with Problems & Unintended Consequences, Health Freedom Act May Cost Idaho Jobs & Over a Billion Dollars

An attempt by Idaho lawmakers to opt out of federal health care reform could prove disastrous for the state -- resulting in the loss of over a billion federal dollars for Idaho and thousands of jobs in the state.  As the Idaho Health Freedom Act (IHFA) moves closer to a vote by the Idaho House, AARP is urging lawmakers to consider the long-term consequences of the bill and put the brakes on the measure.

"The Health Freedom Act fails to look at the long-term and unintended consequences of opting out of any type of health care reform at the national level, and that could devastate Idaho's health care system," said Jim Wordelman, State Director for AARP in Idaho.  "If approved by the legislature, this act could cost Idaho money and jobs at the worst possible time. We can't afford to take that risk."

The IHFA, cosponsored by Representatives Jim Clark, Lynn Luker and Raul Labrador, seeks to prohibit the government from requiring people to carry health insurance -- with the intent being to oppose and nullify any type of proposed federal health care legislation.  The fallout from such a move could see Idaho lose its federal match for Medicaid -- $1.26 billion -- and the Children's Health Insurance Program -- $36 million.  Along with the loss of federal money comes the loss of hundreds of state health care jobs.

"AARP stands in strong opposition to this measure. It's a bad idea in a good economy -- in a bad economy, it's a horrific idea that could prevent Idahoans from getting the care they need and worsen our state's budget crisis," added Wordelman.  "This act takes aim at a federal law that doesn't even exist, and may end up being very different from current legislation. This achieves very little benefit to Idaho, but the problems it can deliver are vast and harsh."

Similar legislation was introduced -- and defeated -- in six states last year. This year, measures are being introduced in roughly twenty-five states.

Chief among AARP's concerns are:

Potential Litigation: The IHFA is subject to many interpretations, and could draw the state into costly litigation, further depleting state resources, while not benefiting Idaho residents. As it is, in a tight budget year, the IHFA appropriates $100,000 to legal efforts to defend the action; the cost of litigation would likely be much higher.

Loss of Federal Money and State Jobs: This act could jeopardize more than $1.5 billion in federal matching funds for programs like Medicaid and SCHIP (State Children’s Health Insurance Program) -- funds Idaho depends on to provide critical health and long-term care services to over 150,000 Idaho families, children and retirees.

Contradicts Idaho Policy:  Idaho currently requires all full-time students at state colleges and universities to carry health insurance; if they don't, the penalty is they cannot enroll in school.  This is a state mandate for insurance coverage that carries a penalty; it would be counter to the IHFA.  

Ties the Hands of Idaho Legislators on Health Care:  If Congress passes health reform, it could eventually become the law, regardless of this Act.  If passed, the IHFA may tie the hands of Idaho lawmakers from fully participating in all available state options and in determining what policies to put in place.  Idaho lawmakers need to have a full array of options to choose from to tackle state specific issues.

A Risky Gamble: IHFA raises too many unanswered questions and holds too many unintended consequences.  In Idaho's struggling economy, our businesses and families can't afford to take a gamble on an unproven and potentially dangerous idea.