CATO: Just Say ‘No’ to Insurance Exchanges

In a well-made video released a few weeks ago, the Cato Institute's outspoken director of health policy, Michael F. Cannon, makes the case for states refusing to create the health insurance exchanges envisioned by the Affordable Care Act (ACA).

In releasing the video ahead of the U.S. Supreme Court decision on the constitutionality of the ACA -- expected any day now -- Cato is trying to fill the news void with a provocative idea. Whether or not the Supreme Court strikes down all or part of the ACA, Cannon makes the case that states should not cooperate with the law and should refuse to set up exchanges.

The healthcare law doesn't actually require states to create these exchanges and without these exchanges the whole law falls apart.... What states should be doing is refusing to create an exchange no matter how the Supreme Court rules.

Some states have begun setting up health insurance exchanges as a way of protecting themselves from having a federal exchange imposed on them. But Cannon suggests the federal government will effectively take over state health insurance exchanges, and that creating an exchange makes a state more susceptible to federal takeover, not less.

Alongside the thought-provoking video, Cannon lays out some additional arguments against states enabling health insurance exchanges, including issues of religious freedom and debt reduction.

CATO presents a unique and independent perspective on insurance exchanges. Cannon's video is worth a look.

Source: "States Should Flatly Reject ObamaCare Exchanges," Cato Institute Video on YouTube, May 21, 2012.

Image courtesy of Cato Institute Video used under Fair Use: Commentary.

Steve O'Keefe is a freelance writer, author and book editor.