Dem Governors Opposing States’ Challenge to Federal Health Care Law
June 25, 2010 – A small group of Democratic governors wants to file a legal brief in favor of the recently enacted federal health care overhaul despite representing states challenging the legality of the federal effort.
The governors of Michigan, Colorado, Washington and Pennsylvania represent four of the 23 states whose attorneys general filed legal challenges to the federal health care overhaul President Barack Obama earlier cited as his “top” domestic priority. The attorneys general in each of the states the four governors represent are Republicans, who joined the legal challenge officially filed by Florida Attorney General Bill McCollum in March. The governors want to argue in favor of the federal health care law.
“The health care reform legislation passed by the U.S. House of Representatives last night clearly violates the U.S. Constitution and infringes on each state’s sovereignty,” McCollum said when announcing the legal challenge in March. “On behalf of the State of Florida and of the attorneys general from South Carolina, Nebraska, Texas, Utah, Pennsylvania, Washington, North Dakota, South Dakota and Alabama, if the President signs this bill into law, we will file a lawsuit to protect the rights and the interests of American citizens.”
The $938 billion health care package that largely begins to take effect in 2013 requires qualifying individuals without health insurance to purchase it or pay an annual $750 fine – unless the individual is a member of certain religious organizations, such as various Amish sects or the Church of Christ Science. It expands federal Medicaid health insurance coverage for the poor to people earning up to 133 percent of the federal poverty level – currently $10,830 for individuals and $22,050 for families with four members, and provides federal subsidies for qualifying individuals and families to help pay for health insurance coverage.
The legislation also creates health insurance exchanges for U.S. citizens to purchase affordable health insurance coverage with federal subsidies available for people earning up to 400 percent of the federal poverty level. Federal lawmakers say the health insurance mandate and creation of health insurance exchanges should help the estimated 31 million Americans currently lacking health insurance coverage to obtain it and force those who currently choose not to purchase health insurance to buy it.
The estimated cost of the health care reform plan – $938 billion over 10 years – is to be paid through increased taxes on individuals reporting more than $200,000 and couples reporting more than $250,000 in annual income. Taxes also will be levied on so-called “Cadillac” health insurance plans provided by employers and costing $10,200 annually for individuals and $27,500 for families, and tanning salons using ultraviolet lamps would have to pay a 10 percent excise tax. Capital gains taxes also will go up, in addition to several other taxes.
Study: Repealing Colorado’s No-Fault Auto Insurance Law Successful
The Colorado Legislature in 2003 repealed its no-fault auto insurance law and became a “tort” auto insurance state in which people involved in accidents can file lawsuits to settle claims for injuries and damages instead of filing “no-fault” claims with their auto insurance companies.
Under the no-fault system, auto insurance companies paid up to an average $226 in injury claims per insured vehicle in Colorado between 1996 and 1999, according to the Insurance Research Council. The amount increased to $306 in 2002, and the Colorado Legislature responded by repealing the state’s no-fault auto insurance law.
The average injury claim amount dropped immediately upon the law’s repeal, decreasing 27 percent to $223 in injury claim costs per insured vehicle in 2004. Although lowered, the amount remained higher than the national average of $199 that year.
“These numbers show how consumers benefited from the repeal of Colorado’s no-fault auto insurance law,” Said Elizabeth Sprinkel of the Insurance Research Council. “While injury claim costs in Colorado were still higher than the national average immediately after repeal, they were much closer to the norm.”
Average auto insurance liability premium costs also decreased upon changing the state’s insurance law. The average auto insurance liability premium in Colorado was $559 in 2002 and decreased by about 15 percent to $476 in 2004.
Whether you live in a no-fault or tort auto insurance state, you can find the best deals on auto insurance coverage at Insurance-Website. Our free quote tool puts insurance professionals to work to find you the best rates possible, and you are under no obligation to buy after getting your quotes.