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13 State AGs Reject, May Litigate on ?Nebraska Compromise;? Governors Question Feds

By Phil

Friday, January 8, 2010 Update:

Excerpted from Yahoo! News: “What Health Care Reform Means for the States:”

4. A Fight for Federal Aid
Around the capital, the special deal that Nebraska Senator Ben Nelson got to secure his vital, filibuster-breaking 60th vote for the health care bill is now known as the Cornhusker Kickback. Even as political favors go, it’s a whopper: if reform passes, the Federal Government will pay all of Nebraska’s new Medicaid costs forever. And it’s fueling envy and outrage in the other 49 states. Led by South Carolina’s Henry McMaster, the attorneys general of 13 states – 12 Republicans and one Democrat – have signed on to a letter contending the Nelson deal is unconstitutional.

But that’s not the only issue causing friction among states. Another is the fact that some good deeds will be punished under the health reform measures: states that expanded Medicaid coverage on their own – say, to include low-income childless adults under 65 – will get less federal aid than those that have been stingier with their Medicaid programs.

Because liberal and heavily Democratic states have traditionally been more generous in their Medicaid programs, they are likely to be the ones shortchanged. The biggest beneficiaries, arguably, could be states like Texas, whose lawmakers have waged the strongest rearguard campaign against reform. That may be reform’s biggest political irony of all.

Regarding the last paragraph of the above excerpt, Texas Attorney General Greg Abbott is, in fact, a signatory against the kickback; I will be providing a very specific update from his office below.

Alabama Governor Bob Riley has asked that his State’s Attorney General, Troy King, one of the 13 State Attorneys General who are part of a push to remove the Nebraska Compromise (original story below the dashed line) as well as monitor Congress’ progress on healthcare for other potential unconstitutional issues, to look for all other such questionable deals made to secure votes:

In a letter to Attorney General King, Governor Riley offered the assistance of Alabama?s Medicaid experts in the investigation of the Senate health care shenanigans, but asked that King go further to determine whether other deals have been arranged to alleviate federal funding mandates for certain states in order to win votes. It was recently revealed that Senate Majority Leader Harry Reid worked out special deals that allow the federal government to pay for increased costs of expanded Medicaid programs in the states of Nebraska and Louisiana in exchange for key votes from their senators. Reid also worked out a special financial arrangement for his home state of Nevada.

These deals, Governor Riley explained, come at a time when Alabama has been negotiating in good faith with the federal government to work out a long-running dispute over fairness in federal funding for the state?s Medicaid program.

?It is one thing for Democrats in Washington, DC, to claim they?re enacting health care reform by saddling the people of Alabama with the enormous cost of a federally-mandated expansion of Alabama?s Medicaid program,? Governor Riley wrote. ?It is absolutely unconscionable that they would now saddle Alabamians with the cost of Nebraska?s and Louisiana?s Medicaid expansion, too.?

?Therefore, I am requesting that you expand your investigation to include not only deals that may have been cut regarding provisions in this legislation, but also any other deals or arrangements with this Administration that alleviate, in any way, a particular state?s burden to provide financing for any federal program in order to secure the votes needed to pass this legislation.?

Here is the Governor’s letter:

AG Senate Shenanigans

Next, Idaho Governor C.L. “Butch” Otter is also promising to get into legal action if the current healthcare legislation is signed by the President:

FOR IMMEDIATE RELEASE
December 30, 2009
09:092

GOVERNOR VOWS TO FIGHT HEALTH CARE ?REFORM? BILLS ? IN COURT IF NECESSARY

(BOISE) ? Governor C.L. ?Butch? Otter sent letters to U.S. House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid today, arguing that health care ?reform? legislation being considered by Congress sacrifices ?fiscal responsibility, sound judgment and constitutionality for political expediency.”

If it becomes law, he?s ready to go to court to stop the federal government from imposing ?a crushing unfunded mandate? on state and local governments and the people they serve.

?I question the wisdom as well as the constitutionality and legality of these bills and will explore all my options, including legal action, to protect Idaho and the U.S. Constitution should Congress adopt and the President sign compromise health care legislation,? Governor Otter wrote. ?Given the bills now before the conference committee all that truly will be ?compromised? is our American system of government in exchange for a multi-generational legacy of debt.?

In a one-and-a-half-page letter to Pelosi and Reid (attached), the Governor outlined his concerns with separate bills passed by the House and the Senate, supported by President Obama, which now are being considered by a joint committee. He said both measures reflect ?a fundamental disconnect with the real challenges and priorities of ordinary Americans.?

His objections include:

• Constitutionality: Governor Otter contends the U.S. Constitution does not empower Congress to mandate compulsory health care coverage or to create a nationalized health care system.
• Cost: Governor Otter contends ?The astronomical costs associated with either bill will greatly impact our children and grandchildren as taxpayers shoulder the tremendous debt associated with these potential ?solutions.??
• Compromises: Governor Otter blasted the ?undemocratic and inequitable compromises? reached in the Senate to push that legislation through the process, specifically providing Nebraska and Louisiana with financial rewards for their senators? votes.

The Governor said he would follow the conference committee?s process and continue working with members of Idaho?s congressional delegation ? all of whom opposed the two bills ? to ensure Idahoans? voices are heard.

###
National Health Care Reform Letter

Here is a copy of Governor Otter’s letter:

HealthCareReform_12_09

Next, Texas Attorney General Greg Abbott just days ago sent a letter to Texas’ two Senators regarding this issue. His letter goes into the most detail of all the documents available, to date, regarding specific questions related to the federal healthcare bill:

Healthcare

—-

As I had referenced in a previous posting, lots of State-level resistance is brewing against the congressional healthcare plan, HR3590. Now AmericanGrandJury.org has posted an article summarizing that Alabama Attorney General Troy King has gone on the offensive regarding the “Nebraska Compromise.”

What is the premise of the compromise? According to one of Mr. King’s pressers:

The “Nebraska Compromise,” as it is being called, would ostensibly require the remaining 49 States to recoup the loss of Nebraska’s Medicaid payments, and was added to the Senate bill in return for the vote of Nebraska Senator Ben Nelson (D). With the addition of Senator Nelson’s vote, the Senate’s Health Care Bill was able to move forward with the required 60 votes.

In other words, as Sean Hannity terms it, “Cash for Cloture.”

The same press release contains the following no-holds-barred language describing the Attorney General’s sentiment regarding such federal bills:

“This is no sweetheart deal, it is backroom deal of the worst kind. Alabama, whose citizens overwhelmingly oppose the current healthcare plan, should not be asked to subsidize vote buying by the Senate leadership,” remarked Attorney General King. “If a bill is so deficient that it lacks sufficient support to even reach a vote; it should either be re-written or die. It should not be kept alive by buying the vote of one State’s Senator at the expense of the taxpayers in 49 other States. Perhaps worst of all, the Senate’s brazen action?which was taken in the name of providing healthcare to all?could actually result in denying healthcare to the poorest and neediest across the nation.”

The above was the result of a conference call on Tuesday, December 22, 2009, during which 10 State Attorneys General discussed potential legal challenges:

“No one questions that the Nebraska Compromise is patently absurd. The question is whether it is also unconstitutional,” stated Attorney General King. “We are evaluating whether it is, and, if it is, what our oaths require us to do to defend the Constitution. If the Senate refuses to contemplate these serious constitutional questions and concerns, then we will.”

These State-level discussions had not gone unnoticed by the Nebraskan Senator. In fact, Mr. King reported in another presser — also indicating that the total number of Attorneys General had increased to 13 — that the Senator offered to include all other 49 States in the same “compromise,” a move that would undoubtedly not only raise the cost of the bill by billions of dollars, but was subsequently and unequivocally rejected by South Carolina’s Attorney General Henry McMaster.

My readers will recall in my posting showing 3 main ways that the healthcare bill is unconstitutional that Senators Jim DeMint and Lindsey Graham (both SC GOP) had originally contacted Mr. McMaster about its potential unconstitutionality. In response, here is what the South Carolina AG posted online:

Healthcare

According to Mr. King, not only did Mr. McMaster say “no” to Sen. Nelson, but essentially retorted with a “hell no:”

“Thursday night, Senator Nelson called South Carolina Attorney General Henry McMaster and offered to give all states their own version of the Nebraska Compromise in return for our attorneys general group calling off the dogs,” said King. “Attorney General McMaster’s response was exactly correct ? we reject Senator Nelson’s offer.” Attorney General King said that, “this issue has never been about healthcare reform legislation; rather, it is about upholding the Constitution. I cannot stop the United States Senate from making shady deals and passing bad legislation, but I can object to a violation of the Constitution and take actions as attorney general to stop it.”

The following is the formal letter and statement from Mr. King’s office to Speaker Pelosi and Majority Leader Reid stating the judicial basis for the Attorneys General premise, a request that the compromise language be removed (along with a mild threat of litigation if it is not), and an assurance that the communications does not suggest that this issue is the only potentially unconstitutional provision of the healthcare bill:

King Healthcare

To the 13 State Attorneys General, excellent job thus far in your respective roles of upholding potential enforcement of the Constitution. Hopefully events will not require litigation to be settled, but in the event that they move in that direction, it is especially comforting to know that we, the People (as represented by State-level officials such as yourselves), will not go quietly by the wayside.

-Phil

Cross-posted at FreeRepublic.com

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Full post as published by The Right Side of Life on January 08, 2010 (boomark / email).