Opponents of expansion ask judge to block implementation of new law
Phoenix,
AZ—Thirty-six Arizona state legislators and three concerned citizens
have sued Governor Jan Brewer over the unconstitutional expansion of the
Obamacare Medicaid program
passed by the Legislature earlier this year, asking a judge to block
implementation of the new law.
In
a lawsuit filed by the Goldwater Institute in Maricopa County Superior
Court Thursday, plaintiffs argue that the recent expansion of the
Obamacare Medicaid program led by
Governor Brewer violated Proposition 108, a constitutional protection
passed by Arizona voters in 1992 to require a two-thirds majority of
legislators whenever levying a tax increase. The lawsuit also asserts
that the legislation expanding the Obamacare Medicaid
mandate violates state separation-of-powers doctrine.
This
June, Governor Brewer called legislators into a surprise special
session to approve an expansion of Arizona’s Medicaid program (AHCCCS)
under Obamacare. Thanks to the 2012
U.S. Supreme Court decision on the federal health care law, states are
no longer required to expand Medicaid programs under the law. Still,
Governor Brewer and key allies urged lawmakers to pass expansion,
despite previous experience with Medicaid legislation
in which cost estimates to expand the program exceeded projections by
nearly 400% each year.
To
fund Arizona’s obligations, supporters of expansion opted to charge
hospitals a mandatory provider tax. In order to qualify for funding,
federal law requires Arizona to collect
the tax from hospitals regardless of whether they accept Medicaid
payments. When Governor Brewer and key allies realized they were unable
to muster the two-thirds majority required by the Arizona state
constitution to pass expansion, they attempted to dodge
Prop 108’s requirements by surrendering the Legislature’s taxing power
to the director of AHCCCS, an unelected bureaucrat.
The
Obamacare Medicaid expansion—and the provider tax that will fund
it—passed both state legislative bodies with little more than a simple
majority vote, falling short of the
constitutionally required minimum necessary to approve a new tax.
Structurally, the expansion also violated critical separation-of-powers
provisions by relinquishing the taxing power to the AHCCS chief, who is
now empowered to set tax rates and give exemptions
to select hospitals.
“This
is exactly the sort of scenario that Prop 108 was designed to prevent,”
said Christina Sandefur, one of the Goldwater Institute attorneys
leading the case.
“By
enacting a tax without the two-thirds majority required by our
Constitution, the state has disenfranchised citizens whose
representatives opposed the tax.
Legislators are beholden to their constituents, but bureaucrats have no such accountability.”
The
Obamacare Medicaid expansion marks the first time that the Legislature
has directly raised taxes since Prop 108’s passage in 1992, an
indication of the constitutional protection’s
strength when followed.
“If
this bill is not stopped, a dangerous precedent will have been set that
extends far beyond Medicaid expansion,” said Sandefur. “Blocking
implementation of this law is critical
to preserving the democratic protections Arizonans have enshrined in
their constitution.”
To schedule an interview, please call Communications Director Lucy Caldwell at (602) 633-8986 or email
lcaldwell@goldwaterinstitute.org.
More information about the case can be found here:
http://goldwaterinstitute.org/sites/default/files/Medicaid%20expansion%20challenge%20backgrounder-afw_0.pdf
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