Tuesday, January 5, 2010

States Fighting The Cornhusker Kickback

I guess other states are unhappy that they are being forced to pay Nebraska Senator Ben Nelson a bribe:

Thirteen state attorneys general have sent a letter to Congress threatening legal action against health care reform unless a provision in the Senate bill given to Nebraska is removed.

The provision is known as the “Cornhusker Kickback,” because it gives Nebraska a permanent exemption from paying for Medicaid expenses that would be required of all the other states. This means that taxpayers in other states would be paying for an increase in Nebraska’s Medicaid population. Medicaid is a federal-state health care program for the poor.

“This provision is constitutionally flawed,” the attorneys general wrote. “As chief legal officers of our states we are contemplating a legal challenge to this provision and we ask you to take action to render this challenge unnecessary by striking the provision.”

The Dec. 30 letter was sent to House Speaker Nancy Pelosi (D-Calif.) and Senate Majority Leader Harry Reid (D-Nev.).

“It has been reported that Nebraska Senator Ben Nelson’s vote, for H.R. 3590 [Senate health care bill], was secured only after striking a deal that the federal government would bear the cost of newly eligible Medicaid enrollees,” the attorneys general wrote.

“In marked contrast, all other states would not be similarly treated, and instead would be required to allocate substantial sums, potentially totaling billions of dollars, to accommodate H.R. 3590’s new Medicaid mandates,” they added.

In addition to the possible litigation, there are proposals in 26 state legislatures for an amendment to their state constitutions that would allow individuals to pay directly for medical care if they choose, and block any state attempt to penalize individuals for not purchasing government-approved insurance.

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