South Carolina Statehouse Blog

Columbia, S.C. - April 30, 2010 - Governor Mark Sanford today announced his decision to reject ObamaCare’s demand that South Carolina create a separate but unequal high risk pool for the uninsured, arguing that this new healthcare law’s unintended consequences and heavy costs to state taxpayers are too great a burden in an already horrific state budget year. In doing so, Gov. Sanford joins a growing and bipartisan group of states that are opting out of creating a state-based high risk pool in compliance with ObamaCare.

“While the debate over this misguided government takeover of health care may be over for now, this unfunded mandate and high risk pool deadline forced upon the taxpayers of South Carolina will have costly consequences that I feel duty-bound to oppose,” said Gov. Sanford. “In fact, for states like South Carolina this represents nothing more than a Faustian bargain from the Obama Administration to cajole, and if necessary compel, states that are already struggling through painful budget cuts to dedicate yet more down the road to a health care system that erodes liberty and individual responsibility while at the same time empowering bureaucrats in Washington D.C. and spending yet more money we don’t have.

“First, we simply can’t afford a mandate that could indeed cost the state’s taxpayers millions of dollars. Under the present law * as even the chief actuary for Centers for Medicare and Medicaid Services reports * the federal government has only allotted enough money to pay for the program for one or two years. After that the states would be forced to pick up the tab. Given the severe budget constraints we’re under, both short term and long term, this kind of federal mandate just isn’t feasible.

“Second, the mandates included in ObamaCare put further strain on small businesses. It would require businesses with 50 or more employees who don’t offer health insurance coverage to pay $2,000 in annual fines for each full-time employee * thus either adding to their already hefty tax burden, or creating an incentive to indeed get rid of employees.

“Third, the federal high risk pool mandate pushes the neediest across our state toward irresponsibility while imposing unfair burdens on others. There are currently 2,000 participants in South Carolina’s already existing high risk pool who would not qualify for the new pool unless they drop coverage for six months * thus setting up some of our neediest citizens for ruin. At the same time, those who carry insurance will still have to pay their premiums while supporting the high risk pool with their federal tax dollars.

“In short, we will not implement this unfunded federal scheme. In fact, we continue to believe that ObamaCare violates the principle of federalism and will, at the end of the day, force states and taxpayers to foot the bill for this reckless federal experiment.”