Clearly, we dodged a bullet by not establishing a state run exchange. The AG appears to be watching for 'ricochets.'
Not unlike the camel’s nose, the exchange was a buy-in to undermine state sovereignty. Fortunately, Michigan attorney general Bill Schuette appears to be trying to make sure the mandate does NOT apply to Michigan residents. From MLive:
Attorney General Bill Schuette is arguing an IRS rule offering tax credits to individuals buying health insurance on the federal exchange from states without their own exchanges violates the U.S. Constitution.
The argument was made in a “friend of the court” brief filed in a case before the U.S. Court of Appeals for the D.C. Circuit, where individuals and businesses from states without insurance exchanges are challenging the ability of the IRS to offer tax credits for buying insurance through the federally established exchange.
Schuette and the attorneys general for Kansas and Nebraska argue that allowing the IRS to offer the credits overrules the decisions not to set up exchanges under the Affordable Care Act that 34 states made and is invalid under the Tenth Amendment.
Schuette’s on the right track.
Additionally, it should be noted that this might not be the most popular move, and could be painful to his campaign in the general. As many Michiganians are expecting a federal subsidy, it may not happen or they may lose that subsidy if this action is successful.
This is a courageous and quite correct move.