Storm the gates on Thursday, May 23

Governor Steve Beshear is continuing to violate state law by not ceasing operation of his illegal Kentucky Health Benefit Exchange despite its clear violation of KRS 12.028.

Please make plans to attend the next meeting of the Kentucky Health Benefit Exchange tomorrow, Thursday May 23, 2013 at 1:30 pm. The meeting will be held in the Exchange's palatial headquarters at 12 Mill Creek Park in Frankfort.

This one may be somewhat more interesting than the usual government meeting.

Medicaid expansion not what it appears to be

A new Pew Research survey suggesting a deep south split between Republican politicians opposing the ObamaCare Medicaid expansion and citizens who want it serves as a perfect example of the misinformation campaign to promote federal takeover of healthcare.

Results show some 62% of respondents in a handful of states who rejected the expansion think it would be a good idea to expand Medicaid just as Obama and some Democrats want.

But they gloss over a key point we should not miss.

The question is stated as follows: "I’m going to read you some elements of the health reform law. As I read each one, please tell me whether you feel favorable or unfavorable: the law will expand the existing Medicaid program to cover more low income uninsured adults."

This is misleading because many if not most of those caught up in the expansion will not be from the ranks of the uninsured. In fact, the law prohibits people in the health exchanges who qualify for Medicaid from purchasing private health insurance.

If more people understood that, those numbers wouldn't be nearly so high.

Herald Leader edits in error to ObamaCare story

Lexington Herald Leader reporter Jack Brammer attended yesterday's first hearing in the Adams v. Beshear case challenging the legality of the ObamaCare state-run health insurance exchange in Kentucky. He filed his report around midday, accurately and fairly depicting the morning's events as I read it.

Then it was brought to my attention in this morning's paper that his story contained a key factual error that, if believed, could damage our case to hold Gov. Beshear accountable, shut down the ObamaCare exchange and prevent future governors from attempting to abuse the lawmaking process.

The offending sentence reads as follows: "The exchange will be financed entirely with federal dollars until Jan. 1, 2015, after which Beshear has saiid iit will be wholly financed with revenue it generates."

This is not true.

The federal Affordable Care Act explicitly says each state with a state-run exchange must create and run a "Navigator" program as part of the exchange. It further explicitly says such programs can not be funded by federal money. To enact the required Navigator program during the open enrollment period starting October 1, 2013, state funds must be used.

The false statement is one Gov. Beshear keeps repeating, though not enough to make it true. As of 4pm Tuesday, the Herald Leader has failed to correct their error. That is a shame:

Text of Medicaid lawsuit

COMMONWEALTH OF KENTUCKY
FRANKLIN CIRCUIT COURT
DIVISION ___
CIVIL ACTION NO. 13-CI-______

David Adams PLAINTIFF,

v. COMPLAINT

COMMONWEALTH OF KENTUCKY, DEFENDANTS
OFFICE OF THE GOVERNOR, Steven L. Beshear,
OFFICE OF THE SENATE PRESIDENT, Robert Stivers,
OFFICE OF SPEAKER OF THE HOUSE, Gregory Stumbo,
CABINET SECRETARY HEALTH AND HUMAN SERVICES,
Audrey Tayse Haynes

Serve: Governor Steven L. Beshear
Office of the Governor
700 Capitol Avenue, Suite 100
Frankfort, KY 40601

Serve: Senate President Robert Stivers
Office of the Senate President
702 Capitol Ave
Annex Room 236
Frankfort KY 40601

Serve: House Speaker Greg Stumbo
Office of the Speaker of the House
702 Capitol Ave
Annex Room 303
Frankfort KY 40601

Serve: Audrey Tayse Haynes
Cabinet For Health and Family
Services
275 East Main Street 5W-A
Frankfort, KY 40621



---------------------------------------------------------------------------------------------------------------------------

Plaintiff, David Adams, for his Complaint against Defendants, the Commonwealth of Kentucky, acting through the Office of the Governor (“Governor”), and Governor Steve Beshear, in his official capacity as Governor of the Commonwealth, Senate President Robert Stivers, in his official capacity as Senate President, House Speaker Greg Stumbo, in his official capacity as House Speaker and Audrey Tayse Haynes, in her official capacity as Secretary of the Cabinet for Health and Family Services respectfully states as follows:

I. NATURE OF ACTION

1. This is a civil action for declaratory and injunctive relief relating to Governor Beshear’s acceptance of the optional Medicaid expansion as part of the federal Patient Protection and Affordable Care Act, hereinafter PPACA. David Adams seeks injunctive relief in the form of a court order forbidding Governor Beshear and the General Assembly from acting to accept the Medicaid expansion as part of compliance with optional provisions of PPACA or under any circumstances without prior and proper legislative approval.

2. Time is of the essence in resolving this issue because the current Medicaid expansion is scheduled to take effect January 1, 2014 with enrollment starting October 1, 2013. Continued delay in limiting the state officials’ activities in this matter to within the scope of Kentucky law and the Constitution of the Commonwealth of Kentucky sets a terrible precedent for ignoring constitutional  limits on executive and legislative branch authority to protect Kentuckians’ rights to seek and pursue their safety and happiness as explicitly guaranteed by the Kentucky Constitution.

3. The judicial branch of the Commonwealth of Kentucky is the only remaining venue for redress available to David Adams.

4. As a result of the actions of Governor Beshear and the General Assembly, David Adams respectfully seeks an injunction against Governor Beshear’s acceptance of the PPACA Medicaid expansion or any other expansion of Medicaid eligibility until such time as he receives proper legislative approval as required by Kentucky law and the Kentucky Constitution.

5. To the extent that KRS 205.520(3) provides absolute authority to Secretary Haynes “to take advantage of all federal funds that may be available for medical assistance” it represents an unconstitutional usurpation of citizens’ rightful protections against absolute power found in Section 2 of the Constitution of the Commonwealth of Kentucky.

6. Attorney General Jack Conway is being served with a copy of this Complaint pursuant to KRS.418.075 in as much as the constitutionality of KRS. 205.520(3) is brought into question.

II. THE PARTIES

7. David Adams is a citizen of the Commonwealth of Kentucky.

8. Governor Steve Beshear is sued in his official capacity as Governor of the Commonwealth of Kentucky.

9. Senate President Robert Stivers is sued in his official capacity as Senate President of the Commonwealth of Kentucky.

10. House Speaker Greg Stumbo is sued in his official capacity as Speaker of the House of Representatives of the Commonwealth of Kentucky.

11. Cabinet Secretary Audrey Tayse Haynes is sued in her official capacity as Secretary of the Health and Family Services Cabinet.

III. JURISDICTION

12. Jurisdiction is proper pursuant to KRS 418.040 and Kentucky Constitution Section 112 (5).

IV. FACTUAL ALLEGATIONS AND BACKGROUND

A. Patient Protection and Affordable Care Act

13. On May 9, 2013 Governor Beshear announced his intention to accept the optional Medicaid expansion as part of PPACA. KRS 205.520(3) reads as follows: “Further, it is the policy of the Commonwealth to take advantage of all federal funds that may be available for medical assistance. To qualify for federal funds the secretary for health and family services may by regulation comply with any
requirement that may be imposed or opportunity that may be presented by federal law. Nothing in KRS 205.510 to 205.630 is intended to limit the secretary's power in this respect.”

14. KRS 205.520(3) was enacted in 1966 as House Bill 115. It has been amended repeatedly by subsequent actions of the legislature, but never eliminated or changed in such a way as to protect Kentucky citizens as guaranteed by the Kentucky Constitution.

15. This statute is unconstitutional in that it grants unchecked and absolute powers to the Secretary of the Health and Family Services Cabinet in violation of Section 2 of the Constitution of the Commonwealth of Kentucky which reads: “Absolute and arbitrary power over the lives, liberty and property of freemen exists nowhere in a republic, not even in the largest majority.”

V. CLAIMS FOR RELIEF

16. David Adams seeks declaratory relief pursuant to KRS 418.040. David Adams seeks a judicial determination of the rights and duties of the parties with regard to an actual controversy arising out of Governor Beshear’s attempt to implement optional provisions of PPACA without receiving proper legislative approval and David Adams’ rights as a citizen to protection from “absolute and arbitrary” government power guaranteed by Section 2 of the Kentucky Constitution. Further, David Adams seeks a declaration that KRS 205.520(3) represents an unconstitutional usurpation of citizen rights by the executive and legislative branches of the government of the Commonwealth of Kentucky.

17. David Adams seeks injunctive relief pursuant to rights protected by Section 2 of the Kentucky Constitution. David Adams seeks a judicial determination that Governor Beshear does not possess the authority to unilaterally accept the optional Medicaid expansion under PPACA or under any circumstances without proper legislative approval and that the expansion of Medicaid eligibility under PPACA is therefore null and void in the Commonwealth.

VI. PRAYER FOR RELIEF

WHEREFORE, David Adams prays for relief as follows:
1. David Adams requests the court enter a judgment declaring the legislature erred in granting the executive branch authority to accept optional federal mandates without limit, erred in not rescinding this authority granted in violation of Section 2 of the Constitution of the Commonwealth of Kentucky and that Governor Beshear did not and does not have the authority to accept optional federal mandates without legitimate legislative approval and that since no proper authority existed or exists for expansion of Medicaid related to PPACA or under any circumstances and that Governor Beshear may not elect to expand Medicaid or otherwise seek or accept federal funds without specific and legitimate legislative authority, including the Medicaid expansion relating to PPACA.



Respectfully submitted,


David Adams
121 Nave Place
Nicholasville, KY 40356
859-537-5372
Plaintiff




CERTIFICATE OF SERVICE


This certifies the forgoing was served this ____ day of  __________, 2013 via U.S. Mail upon:


Serve: Governor Steven L. Beshear
Office of the Governor
700 Capitol Avenue, Suite 100
Frankfort, KY 40601

Serve: Senate President Robert Stivers
Office of the Senate President
702 Capitol Ave
Annex Room 236
Frankfort KY 40601

Serve: House Speaker Greg Stumbo
Office of the Speaker of the House
702 Capitol Ave
Annex Room 303
Frankfort KY 40601

Serve: Audrey Tayse Haynes
Cabinet For Health and Family
Services
275 East Main Street 5W-A
Frankfort, KY 40621

Attorney General Jack Conway
Office of the Attorney General
700 Capitol Avenue Ste. 118
Frankfort KY 40601



_________________________________

David Adams

One rock for Goliath

On Monday May 20, the first public hearing of my lawsuit against Kentucky Gov. Steve Beshear takes place in Frankfort. What follows is a quick post to explain what's up.

ObamaCare remains ubiquitous as the biggest scandal of the present Administration in Washington D.C., even as Benghazi, IRS/Tea Party and spying on the Associated Press catch fire. The federal takeover of our healthcare system dwarfs all other conflagrations.

A key gambit in the federal effort involved getting the states to buy in and, essentially, do a lot of the dirty work for the feds in terms of on-the-ground implementation and financing of "health reform."

The strategy also seems to clearly involve giving federal officials someone else to blame when ObamaCare fails to meet its rosy expectations. The transparency of this strategy hasn't fooled very many people. In fact, of all the states only Kentucky rejected Obama's bid for re-election in 2012 but swallowed his health plan whole.

That means Kentucky has taken the bait to create a health insurance "exchange," an option under ObamaCare and has agreed to expand Medicaid, also an option as part of the United States Supreme Court ruling.

Governor Beshear implemented the exchange with a July 2012 executive order which was proper for a temporary reorganization of state government, but required subsequent legislative approval under KRS 12.028(2), which was never received.

When the 2013 General Assembly ended without the required legislative oversight having taken place, further development of the Kentucky Health Benefit "ObamaCare" Exchange became illegal.

When Gov. Beshear refused to follow the law, I filed suit against him in Franklin Circuit Court. Again, the first hearing is Monday. The public is invited to attend. We will be in Judge Phillip Shepherd's courtroom in the Franklin County Courthouse at 669 Chamberlain Avenue at 9:00 am on Monday May 20. Please join us and invite friends. The more eyeballs we have on this process, the better.

Also on Monday, I will file a second suit to halt Gov. Beshear's unilateral expansion of Medicaid in Kentucky. He cites KRS 205.520(3) as giving his Administration authority to do this without input from the people. And it does give him that authority. Here is the problem, though: passed in 1966 as HB 115, this piece of statute is unconstitutional under Section 2 of the Kentucky Constitution.

In short, when the legislature gave such authority to the governor they failed to recognize this form of absolute power was not theirs to give. It belongs to the people and we are going to Frankfort to get it back.

When Gov. Beshear railed against our effort to hold him accountable, telling us to "get over it," some of us were reminded of the last words of Goliath found in 1 Samuel 17:44: "And the Philistine said to David, Come to me, and I will give thy flesh unto the fowls of the air, and to the beasts of the field."

Has panicked Beshear shifted legal strategy again?

When Gov. Steve Beshear filed his executive order creating the Kentucky Health Benefit Exchange last July, he claimed without credibility the "Constitution of the Commonwealth of Kentucky and KRS 12.028" gave him the authority to unilaterally establish the key portion of ObamaCare.

It is extremely clear that neither our foundational document nor the statute he cited provide Beshear with the power to permanently reorganize government and create a new bureaucracy, appropriate funds, raise taxes (or fees) or write new laws without legislative approval.

Then on May 2, 2013, Beshear claimed in a court filing that mere taxpayers could not question his actions because the taxes he created to meet the state's financial obligations in the exchange "plainly do not impose a tax." This claim was obviously plainly false, which he was forced to admit today:

Then Gov. Beshear spoke to CNHI reporter Ronnie Ellis, who asked him again about his authority to create the exchange. Beshear told him a Kentucky law allows him to "maximize" federal funds.

Assuming that in this latest move Gov. Beshear is referring to KRS 205.520(3), he is saying the Secretary of Health and Family Services is using her own authority and not his "to take advantage of all federal funds that may be available for medical assistance."

This would be an interesting move, essentially conceding the main point of the lawsuit but still trying to take an end run around the legislature to create the exchange. That would drop Gov. Beshear from the suit and make Secretary Audrey Haynes the focus as well as powers delegated to her which are unconstitutional and stupid.

I'd love to argue the merits of that point in court.

The state-run health benefit exchange is the mother of all unfunded mandates. To justify setting it up as a means to maximizing the receipt of federal funds is not only wrong-headed in this case, the authority wasn't the General Assembly's to give away. That authority belongs to the people and is protected by Section 230 of the Kentucky Constitution. If that is to be the new focus of the lawsuit, so be it.

Beshear launches "Get Over It" tour Wednesday

Kentucky Governor Steve Beshear, fresh off stirring up ObamaCare opponents by telling them to "get over it" when asked about the upcoming government created trainwreck in healthcare, has called another press conference for tomorrow Wednesday May 15, 2013 to rub your noses in it further.

Governor Beshear says he will be in the State Capitol room 110 tomorrow at 11:00 to continue telling worried healthcare consumers how stupid they are not to believe that the federal takeover of healthcare will magically work out for everyone despite all the mounting evidence to the contrary.

Hope to see you there.

Looks a lot like a Kentucky death panel

Kentucky's Medicaid program is in a state of chaos and Governor Beshear has called a Thursday press conference to announce he intends to make it much worse in a big hurry.

If you think this doesn't matter to you, you are wrong.

First, you may be forced into Medicaid despite drastic shortages of willing providers, horrific mismanagement of the program in Kentucky and despite your better judgment.

If your income is below 138% of the federal poverty level and you have health insurance through your employer, your days may literally be numbered.

Under ObamaCare and with the Medicaid expansion Beshear craves, state General Fund losses will swell. That impacts all of us.

And if you qualify for Medicaid, you can expect to be forced to join it, even if you have been working your tail off at a job offering low wages but decent health coverage. That's because the "health insurance exchange" many will be forced into will refuse to sell you health insurance under any circumstances.

This video comes from a Chamber of Commerce speech given Wednesday by Kentucky Health Benefit Exchange Deputy Director William Nold:

And one key fact they really don't want you to know is that anyone previously eligible for Medicaid but on private coverage now does not get the temporary 100% match from the federal government. Bad coverage and unaffordable is not exactly a winning combination. Thanks again, Governor.

Judge slaps down Lexington Police, Prosecutor

Fayette Circuit Judge Pamela Goodwine struck a blow for the rule of law Tuesday by ruling against local law enforcement thugs in their nine month torment of a Lexington business.

Goodwine dismissed bizarre claims of the Fayette County Attorney that police can simply barge into a local business and illegally confiscate a quarter of a million dollars of property.

Goodwine ordered police to return the property stolen last August from Ginny Saville, owner of Botany Bay on Winchester Rd. Much of it was destroyed in the summertime smash and grab operation by police and the rest probably hasn't fared well stuffed in a warehouse all this time.

Lexington taxpayers will be held responsible for these illegal actions of Lexington Police in an upcoming civil lawsuit. Local politicians have made this worse by resisting to take necessary actions to ensure police operate within the confines of the law, mostly because local media doesn't call any of them on their nonsense.

Sadly, no one thinks he will be a victim of extreme official misconduct such as this until it happens. This is a perfect example of why we must protect the Liberty of all people, all the time. Spend even an hour in a local courtroom and you are fairly likely to see how the system feeds on victims who never thought it could happen to them either.

Summing up Adams v. Beshear so far

Kentucky Governor Steve Beshear wants to win his fight for assuming the ObamaCare unfunded mandate without addressing funding or mandates.

We should not let him do it.

In open court next Monday, Beshear's lawyers will claim mere taxpayers can't stop his recklessness because no one can demonstrate "prejudice to their rights as taxpayers or a loss to the Commonwealth." But that just isn't true.

The Kentucky Health Benefit Exchange will be funded "from revenues generated by the Exchange" according to Beshear's executive order creating said exchange. That means starting October 1, 2013 Kentuckians will start paying money to buy health insurance that they haven't had to pay before. This change was created without legislative action of any kind. That violates Sections 27, 28 and 230 of the Kentucky Constitution.

By itself, this action violates the rights of taxpayers to not have their pockets picked without legislation first being properly enacted. If that isn't prejudicial to their rights, what is?

Worse, the Exchange executive director told the Associated Press in January that tobacco settlement funds currently set to go elsewhere would be re-directed toward Exchange expenses. These funds could theoretically be appropriated in the next budget when federal funds run out, but one would have to expect ObamaCare to suddenly not be politically poisonous for that to happen. Fat chance.

Further, "losses to the Commonwealth" have already begun with the accrual of pension benefits for Exchange employees in one of the worst funded state retirement systems in the nation. Those losses are not speculative, nor are the inevitable cost overruns in the exchange that will fall in the next budget biennium, but can only be prevented by stopping the Governor in this one.

The issue of timing is also critical to the Governor's motion to dismiss to be heard on May 13. If all the harm is only potential harm in the next budget cycle, then he might have a point. But that is not the case. Despite his insistence that there are no new taxes in the Exchange, the truth is that new insurance taxes will be charged to consumers starting this October 1. The Exchange executive director has said at different times that operational costs would be met solely through a redirected existing insurance tax or through a combination of a new exchange tax and redirected tobacco settlement funds or no taxes whatsoever -- his current, not at all believable story.

Governor Beshear has much more work to do to make the case for the Kentucky Health Benefit Exchange. The legislature must hold him accountable, as must the courts and taxpayers. The Constitution already has.

Beshear contradicts Obama in clumsy court filing

Kentucky Governor Steve Beshear doubled-back on President Barack Obama's admission that ObamaCare is a tax today in a filing with Franklin Circuit Court asking for dismissal of the case against him for illegally implementing federal reforms in the state.

"Since the Executive Order at issue herein plainly does not impose a tax," Beshear claimed in his motion, the case must rest on a finding of unconstitutional "official acts" which he says citizens aren't allowed to question in court.

The Governor goes on to call the expenditure of state funds to run the Kentucky Health Benefit Exchange "speculative" although by agreeing to set up the exchange, Beshear has made a firm commitment to the federal government to make those expenditures.

There will be a hearing at the Franklin County Courthouse 669 Chamberlain Avenue Frankfort at 9 am ET on Monday May 13.

What it feels like to be lost at sea

If you haven't dealt directly with a health insurance company in recent years, you may soon be in for a rude awakening. Through repeated attempts the last few months to glean fairly straightforward information about health coverage from the five companies licensed to sell in Kentucky, I've found that they appear to be hiding  any employees capable of doing much more than writing your name down and saying "I don't know."

After another trip through the fabulous five just now, I found the ignorance has taken on a distinct arrogance as well. I've heard others suggest health insurers under complete government control would be like the DMV, but I've never been treated nearly as disdainfully in all my years chasing down answers to drivers license issues.

Gilligan was never so lost on the abandoned island as these people seem to be. And wrapped in the protective arms of federal and state government control, there is no reason to expect consumers to have any kind of weight to throw around with "health insurance companies" under ObamaCare.

Yesterday was the deadline for insurance companies to apply to state health benefit exchanges to sell insurance through them beginning January 1, 2014. Earlier today, I asked all five companies in Kentucky (Anthem, Humana, Assurant, Golden Rule and John Alden) if they even applied and couldn't even get a single answer to that. I asked the Kentucky Health Benefit Exchange which companies met the deadline and, of course, got no aswer from them either.

They can't keep it a secret for long. But that deer in the headlights look? Unfortunately, you may need to get used to that.

Kentucky "health" liberals offer you a free lunch

You know the old saying about a free lunch. Everyone knows it. The left-wing zealots at Kentucky Voices for Health hope enough of us are willing to blindly set aside the "there's no such thing as" part of this truism just one more time for the sake of ObamaCare.

If anyone you know has been holding back waiting for something to give a damn about in politics, now is their time.

Governor Steve Beshear says he will announce his decision to accept the optional Medicaid expansion part of ObamaCare and "Kentucky Voices for Health" is pushing for a yes with this online advertisement.

The idea that Gov. Beshear can provide health coverage for 400,000 Kentuckians "with a signature" should be so transparently absurd in a modern society as not to merit a response. Unfortunately, that's not the world we live in.

These people should be forced to identify 600,000 uninsured Kentuckians. Further, they should be forced to identify even 150,000 uninsured Kentuckians (probably more like it) who would benefit from being forced into an already overburdened, unaffordable and inefficient Medicaid system.

The truth is most of the new Medicaid recipients under ObamaCare will come from the ranks of the already privately insured.

And the costs will not be at all easy to ignore for anyone when they hit.

My greatest frustration is talking to people who don't believe a single word coming out of President Obama's mouth but have somehow swallowed whole the  outrageous lie that ObamaCare and all its provisions are inevitable and that we should just stop fighting because we can't win.

The truth is we can win and as Democratic Senators who championed ObamaCare four years ago drop like flies, we are winning. These "free lunch" politicians deserve to have their heads handed to them and we can do it in a big way if just a few of us stand up now.

Please call your State Representative and Senator and tell them you do not support Gov. Beshear in his desire to accept the ObamaCare Medicaid expansion "free lunch." Ask them to relay your sentiments to the Governor. Then please call the Governor himself at 502-564-2611 and tell him the same thing.

And then please directly ask ten friends to do the same. Thank you...

Emailing Frankfort's "health" bureaucrats

The Kentucky Health Benefit Exchange "ObamaCare" website helpfully solicits citizen comments and questions on their web site. They don't, however, appear to be too keen about answering them.

Take, for example, an email I sent to them on April 24 at 2:25 pm. My question was fairly simple: "How many navigators will Kentucky hire and at what cost?" One week later, no response.

So just now, I sent another asking "Exactly how will KHBE fund the Affordable Care Act Navigator program and how many navigators will there be in Kentucky? How much longer do you expect to be able to keep this quiet?"

I've also been copying certain members of the Kentucky media with my questions. The first mainstreamer who breaks this story out will have a good one.

Frankfort faltering on ObamaCare navigator program

The ObamaCare state "exchange" web site created to make health insurance buying easier is also required to come with an army of people called navigators whose function it is to walk people through the newly created maze. Kentucky, by multiple accounts, is falling way behind in the creation of it's navigator program and I think I know why.

Beshear administration officials have been telling worried exchange employees that no new funds will be appropriated to operate the exchange and so the lawsuit to stop the exchange is baseless. While this misses the point that Beshear also violated the Constitution by creating an exchange in which he reorganizes government and spends unappropriated funds in addition to raising new taxes, it paints Beshear into corner in which he will either have to admit to the new taxes or claim he is going to pull money from another source to fund his ObamaCare scheme.

Federal law states he must make clear which way he is going.

So the statute requires an exchange to be "self-sustaining" and allows funds for its operations to come from either "assessments or user fees" which would be unconstitutional or from other sources, which would just be politically difficult. Exchange Executive Director Carrie Banahan has claimed both that illegal fees and existing funds will be used.

Administration officials are counting on this "gray area" in the funding source issue to keep the legal struggle in Adams v. Beshear quiet.

One little problem with that.

The law also requires exchanges to have a "navigator" program. And the navigator program must be funded directly by operational funds, which means revenue derived from business activity of the exchange. And that can't legally be collected or spent under Kentucky law.

So maybe Governor Beshear wants to claim the federal law allows him to pull money for the exchange from other parts of government to avoid creating a new tax. That's fine, but if even that works (and that's a big if) it all falls apart in the creation of a funding mechanism for the required navigator program.

Any questions?

We can shut Obama/Beshear down on Medicaid expansion, too

Governor Steve Beshear said he plans to announce soon whether Kentucky will expand Medicaid eligibility, an option under ObamaCare. He does not even need to file an executive order for this like he has tried to do with the Kentucky Health Benefit Exchange.

The Medicaid expansion is still unconstitutional, though. Demonstrating that merely involves a somewhat different legal strategy.

While the failure of the executive order setting up the ObamaCare "exchange" revolves around neither Kentucky law nor the Constitution allowing any governor to write law, reorganize government, levy taxes and fees and spend money without legislative approval, there is a statute that appears to allow him to expand Medicaid.

The trick is that law is unconstitutional.

KRS 205.520 (3) states "it is the policy of the Commonwealth to take advantage of all federal funds 

that may be available for medical assistance. To qualify for federal funds the secretary for health and family services may by regulation comply with any requirement that may be imposed or opportunity that may be presented by federal law."

First, this is incredibly stupid law. Federal money comes with strings attached, usually, and always with Obama. We are opening ourselves up to enormous unfunded mandates in brain-dead fashion with this provision on the books. It simply shouldn't be there.

With regard to the Constitution, though, KRS 205.520 (3) opens up a very interesting can of worms by creating practically limitless current and future appropriations with no legislative approval or oversight. The legal argument from the Governor would likely be that Medicaid expansion is an "essential function" of state government. Debating the efficacy of an expanded Medicaid in open court is long overdue and would be a fight well worth taking on.

John Stossel kicking butt in Kentucky in June

Watch out for a Fox Business Network special report in June on bad government regulations with John Stossel. Of course, they are reporting on Kentucky. (Did you even have to wonder?)

This time, John is looking at the stupid law requiring new moving companies to get the permission of all existing moving companies in order to exist and compete.

RJ Bruner of Lexington's Wildcat Moving has already taped his part of the show. Hope Mr. Stossel comes back when our battle against ObamaCare gets heated up this summer.

Fighting for the Constitution in Lexington

I will be a guest on the Jack Pattie Show in Lexington on Thursday morning May 7 at 9 am ET talking about the lawsuit filed to force shutdown of the Kentucky Health Benefit "ObamaCare" Exchange.

Please call in with questions and comments to 850-253-5959. The show will be broadcast in Lexington on WVLK AM 590 and on the internet at www.wvlkam.com.

Please help spread the word on Facebook by clicking here, on LinkedIn by clicking here or by sharing this post or the links in it by some other means.

And if you would like to contribute financially to this effort, please click here and donate what you can. This case is headed to the Kentucky Supreme Court where recent precedent should result in a strong win. Getting that far is the trick. Thanks for helping out.

Beating back ObamaCare on state and federal fronts

They laughed at us last year when we suggested fighting ObamaCare with religious health sharing groups. This spring, though, we reversed a decade long persecution of Christian Medishare by Kentucky insurance bureaucrats and politicians by literally forcing passage of Senate Bill 3.

We have two more things to do to secure the existence of a free market escape hatch from ObamaCare in case we aren't able to completely dismantle it by other means. First, we need a bill for the 2014 Kentucky General Assembly to finish the job started by Senate Bill 3.

I have written a bill for the 2014 General Assembly that gives consumers legal rights if their health sharing group goes south on them. It involves removing the "no promise to pay" language in KRS 304.1-120(7)(f) and in the required disclaimer statement provided to each member.

The "no promise to pay" language in KRS 304.1-120 (7) can only be justified in terms of providing political cover for House Democrats and limiting underwriting risk for the health sharing groups. Left as it is, the consumer is the only player left unprotected in this scenario. If we think about it, fixing this makes a lot of sense.

The net effect of this suggested legislative change is that Kentucky consumers of these products, rather than being unprotected by both insurance regulators and courts, would gain protection of the courts.

Stand by for more information about this. The second item is one I need your help with right away. Please ask your member of Congress to sponsor legislation to repeal  United States Code 26, Section 5000A, (d), (2), (B) (IV). This will create the opportunity for new health sharing groups to be started, creating more competition and a healthier market for consumers.

No matter what happens with ObamaCare later this year, people will be looking for better healthcare solutions. The best chance for that is outside of government regulation, among providers regulated by competition and informed consumers. Doing everything we can to develop such a market must not be considered optional. We have to do this.

Please consider contributing to this effort by clicking here and donating what you can. Thanks for all you do.

Steve Beshear expands protection racket

If Kentucky had a racketeering statute, Steve Beshear might be frog-marching to the State Reformatory in LaGrange rather than tooling around Frankfort. 

Governor Beshear has fraudulently played on the hopes and fears of Kentuckians for years with literally hundreds of press announcements touting redistribution of wealth schemes to "create" thousands of new jobs that haven't subsequently materialized. Friday's announcement of 100 new call center jobs for the Kentucky Health Benefit Exchange combines multiple enterprises of dubious value and a new state bureaucracy created unilaterally by the Governor without legislative approval.

David Adams of Nicholasville is suing Beshear in Franklin Circuit Court to shut down the Kentucky "ObamaCare" exchange.

"ObamaCare started with a promise of making health insurance more affordable," Adams said. "It's the public policy equivalent now of sending thugs around to collect money so your windows don't get broken or your wife doesn't get kidnapped."