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free trade & free markets national politics & policies Tenth Amendment federalism too much government

A Compact Solution

“We shouldn’t have to leave our country to have a reasonable health care system,” says Eric O’Keefe, chair of the Health Care Compact Alliance.

I agree, but what to do with Obamacare, at present secure from repeal?

O’Keefe points out that Article I, Section 10 of the Constitution permits states to enter into compacts with one another provided they get congressional approval. States have done so since colonial times; there are currently 200 state compacts in force dealing with issues from driver’s licensing to wildlife.

The Health Care Compact would allow states to “get rid of all of Obamacare,” and to tell the federal government, as O’Keefe puts it, “You keep your regulations; send us back our money.”

“It’s not just a way to block Obamacare,” O’Keefe explains. “It includes Medicare and Medicaid, creates a block grant of all the money and it goes into the compacting states for them to manage as they see fit. So the citizens and the legislature will work it out in their state.”

States that join the compact could set up their own health care system with the money they currently receive from the federal government, sans regulations and mandates. While some states might experiment with single-payer systems, others could expand medical savings accounts and other market-oriented reforms.

Georgia, Missouri, Oklahoma and Texas have already passed the Health Care Compact, and will likely apply for congressional approval once a dozen or more states join.

Who’s next?

This is Common Sense. I’m Paul Jacob.