McDonnell releases statement on healthcare passage

Virginia Governor Bob McDonnell just released a statement on the impact of healthcare reform on Virginia and what can be expected in the short term from Virginia’s government to oppose the federal mandate:

“Expanding access to reasonably priced quality healthcare is a
bipartisan goal. We all agree that we must make it easier for Americans
to purchase and retain health insurance.

However, this massive and complex piece of legislation allows the
federal government to exercise control over one-sixth of the United
States economy. The continued intrusion of this Congress into the free
enterprise system, and the placing of new mandates on states, is
shocking to the American system of federalism. Most disconcerting is
the provision mandating that every American must purchase health
insurance or face a monetary penalty. This is an unprecedented
expansion of federal power. It is hard to imagine our Founder’s agreeing
that the United States Constitution permits Congress to mandate the
purchase of a good or service under penalty of law. Just a few days ago
I approved a bill, passed on a bipartisan basis, which prohibits
mandatory insurance purchases for Virginians. Virginia’s Attorney
General has rightly chosen to challenge the constitutionality of the
federal mandate. I anticipate that he will be joined by a number of
other states. The issues raised by Attorney General Cuccinelli require a
full and prompt review by the judicial branch.

While individuals face a mandate in this legislation, so too do the
states. The proposed expansion of Medicaid is an historic unfunded
federal mandate on the states. This expansion will put at least 400,000
more individuals on Virginia’s Medicaid rolls. The Virginia Department
of Medical Assistance Services has estimated that it will cost the
Commonwealth an additional $1.1 billion by 2022. Virginia, and the other
49 states, will bear the financial burden of one of the biggest unfunded
mandates in the history of our nation. This will have a significant and
unavoidable impact on the bottom line of our state budget, and the
general fiscal welfare of Virginia. We simply cannot afford this
expansion.

The bill will cut over $500 billion from Medicare, and may reduce the
quality of the care our seniors depend upon. The Medicare system is
already underfunded and overburdened. This legislation only exacerbates
the problems facing the system.

This legislation will raise taxes on individuals and businesses. Our
small business owners, who generate nearly 98% of the new jobs in
Virginia, will see their taxes go up. This will occur at the same time
that federal tax cuts from the early part of last decade expire. We will
face significantly higher federal taxes at a time when we need to be
keeping taxes low and freeing capital for job creation and economic
development. It can also be anticipated that Virginians’ insurance
premiums will increase in the years ahead after passage of this
legislation.

I am further disappointed that a bill so massive in size is so limited
in its approach. Congressional Republicans were right to call for
allowing the purchase of health insurance across state lines, and this
provision should have been included in the bill.

States have long been leaders in the effort to identify and implement
innovative healthcare solutions. Regardless of the future of this
legislation, we must continue to play that important role in our federal
system. In Virginia we will promote incentives for the purchase of long
term care, and promote individual medical savings accounts. We will
focus on preventative health and combating obesity. We will study our
medical delivery systems with the objective of reforming them to work
better for our citizens. Free clinics are an important piece of the
coverage equation, and I will look for ways by which the Commonwealth
can help with the expansion of these important facilities. We will be
aggressive in finding every way by which we can reduce the cost of our
Medicaid system, which has already grown 1600% in the past 25 years. It
is unsustainable.

Every American should have the opportunity to purchase good quality
healthcare coverage. But we will not improve our healthcare system by
implementing a massive one-size fits all federal policy that
dramatically increases the deficit, puts unprecedented mandates on
states and individuals, and jeopardizes the good coverage most citizens
already have. I am disappointed in the passage of this bill, and I thank
the bipartisan majority of Virginia’s congressional delegation for
voting against it.”

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