At first glance, I thought my informal bet—that a red-state governor will soon claim he stood up to the Obama administration over the formation of health exchanges, despite knowing full well that his or her constituents wouldn’t be eligible for tax subsidies—had died a quick death.
According to a report in the Wall Street Journal:
A number of states are scrambling to show that they—not the federal government—are or will soon be operating their insurance exchanges under the 2010 health law, in light of two court decisions this week.
The efforts are aimed at ensuring that millions of consumers who get insurance through the exchanges would be able to retain their federal tax credits if courts ultimately rule against the Obama administration.
The rest of the story, however, doesn’t bear out this picture of “scrambling.” It’s true that a few of the states mentioned—Idaho, Nevada, New Mexico—have Republican governors. And while Arkansas is bona fide red state, it has a Democratic governor. So we’re not talking here about the likes of Rick Perry or Sam Brownback “scrambling” to secure tax credit eligibility on behalf of their states. That’s to be expected. If such governors were willing to forgo expanded Medicaid money, I don’t see why they’d be in a rush to protect health exchange subsidies, either.
There’s a golden political opportunity in the offing, it seems to me. The aforementioned Perry; or Louisiana’s Bobby Jindal; or New Jersey’s Chris Christie; or Ohio’s John Kasich—one or all of these potential presidential contenders could appeal to their party’s base by making a fresh case that they refused federal blackmail. At the very least, they could ensure the Gruber-gate story has legs for weeks to come.
Mind you, I’m not saying I’m prepared to believe them. (One would think the argument would already have been made at some point over the last two years.) But this whole rotten enterprise is an exercise in post hoc opportunism. This is the next logical step.