HB 1560: The Dubious Plan to Kill Health Care Reform

by: William Tucker

Sun Jan 15, 2012 at 13:30:18 PM EST

Opponents of federal health care reform have seized upon a novel end-run around the law, an interstate Health Care Compact that would replace all federal health care programs — including Medicare and Medicaid — with block grants to the states.

The history of compacts goes back to the colonial period, and more than 200 are currently in force. Many coordinate activities between contiguous states, such as the Port Authority of New York and New Jersey. Others, such as the Driver License Compact and the Wildlife Violators Compact, offer reciprocal recognition of laws and licenses in member states.

The Health Care Compact, however, is the first one that attempts to shield states from a whole area of federal law. It is four pages long and would replace the current federal health-care system with block grants to the states. ...

If a significant number of states pass the compact, supporters plan to submit it to Congress for approval in the same way that the body approves interstate compacts regulating commerce, transportation, and resource conservation and development.

And just like that, billions of dollars will be turned over to the states without any strings attached? Unlikely. Montana Gov. Brian Schweitzer said "we will put a person on Neptune" before Congress approves the compact.

Nevertheless, the Health Care Compact initiative is backed by Tea Party Patriots, Americans for Prosperity and the American Legislative Exchange Council (ALEC), which adopted it as model legislation.

HB 1560 is crafted verbatim from the ALEC model legislation. Its intent is clear. The preamble promises to give New Hampshire the "authority to enact state laws that supersede any and all federal laws regarding health care" within the state. The Republican Liberty Caucus of New Hampshire describes it as "the vehicle that we must use to nullify Obamacare in New Hampshire!"

HB 1560 is sponsored by House Majority Leader D.J. Bettencourt and has been referred to the Constitutional Review and Statutory Recodification committee. The first public hearing is scheduled for January 24 at 10:00 a.m. in LOB 206.