Legislators OK health care lawsuit

PHOENIX — State lawmakers gave final approval Wednesday to legislation Gov. Jan Brewer the right to sue the federal government over the health care plan that Republicans labeled "socialism,'' "voodoo math'' and an assault on the rights of Arizonans.

The measure, approved on a party-line vote, is the first step toward Arizona joining more than a dozen other states that already have challenged the right of the federal government to require individuals to obtain health insurance or face a fine. Brewer, who an aide said will sign the bill Thursday, also wants to attack provisions in the federal law that forbid Arizona from cutting back its own health plan if it wants to get future dollars from Washington.

"We're seeking to protect the citizens from this unconstitutional socialism that is in full bloom in Congress,'' said Sen. Jack Harper, R-Surprise. "The socialists of the day are only a gun confiscation away from being the communists of tomorrow.''

Sen. Frank Antenori, R-Tucson, said the federal plan, if it stands, will undermine the liberty of Arizonans.

"It is will take away your freedom to decide what's best for your family,'' he said. "You'll have to go to that bureaucrat and spend months waiting to see that specialist.''

Rep. Nancy Barto, R-Phoenix, said the new system will result in "waiting lists and rationing.''

Rep. Ray Barnes, R-Phoenix, called the law "a death sentence for old people'' who will find their requests for health care denied.

The move came over the objection of Democrats who both defended the federal legislation and argued that the lawsuit is a waste of time and money.

Rep. Kyrsten Sinema, D-Phoenix, said there already is rationing of health care because insurance companies have exclusions, lifetime caps and denials for pre-existing conditions. All that, she said, goes away under the new federal law.

Sen. Ken Cheuvront, D-Phoenix, tried to add language forbidding the state from spending any of its own cash. He said if Brewer is so interested in challenging the law she can simply join the existing lawsuit filed by the other states.

Harper, however, said it would still be cheaper to pay legal fees, even if they reach $3 million, rather than the $11 billion price tag to the state to comply.

That figure is based on estimates of what it will cost Arizona in health expenses between now and 2014 when Washington will pick up much of the cost.

Most immediately, if this state wants those future federal dollars, it cannot cut eligibility for existing programs. That would force lawmakers to reverse the just-enacted budget which cuts enrollment in the Arizona Health Care Cost Containment System by more than 310,000 and totally eliminates the Kids Care program that provide nearly free insurance to children of the working poor.

But Sinema said the state actually will get an extra $2.3 billion in federal dollars — assuming it keeps spending at the same rate it does now — though that will occur over a decade.

Whether the litigation will succeed or even get into court remains unclear.

One issue is whether the state has legal standing to sue, particularly over the mandate to purchase insurance.

Cheuvront said that right belongs to those who are affected, not the state. Antenori disagreed.

"It is our duty to stand up for those citizens that may not have a voice,'' he said.

"If not us, who will stand up for the people of Arizona?'' added Senate Majority Leader Chuck Gray, R-Mesa.

Sen. Ron Gould, R-Lake Havasu City, said the issue is even more basic than that.

"People don't have the money to join a class-action lawsuit,'' he said, while the state has the resources.

The other part of the legal question is whether the state is being forced to do anything.

"This bill does not require any state to follow any of the 'mandates' in the legislation,'' said Rep. David Schapira, D-Tempe. "We are only required to follow these things if we decide to pull in the federal funds.''

He said this is no different than the federal government requiring states to pass certain safety laws to qualify for federal highway funds.

But Rep. John Kavanagh, R-Fountain Hills, said that ignores the fiscal reality of the situation. He said Washington takes money from Arizonans and then agrees to give some of it back — with strings attached — knowing states will do whatever is necessary to get it.

"The way the federal government get you hooked is insidious,'' he said.

"It's like a heroin pusher,'' Kavanagh continued. "The federal government has us where it wants us,'' he said, meaning financially unable to opt out.

Republicans also lashed out specifically at Attorney General Terry Goddard who refused to join in the federal lawsuit. Goddard, a Democrat and a candidate for governor, has said he believes there is no basis to sue.

Kavanagh said the Legislature is constitutionally empowered to decide the policy of the state and it is up to the attorney general to defend that position.