Ind. to join lawsuit against federal health bill

Indiana followed 13 other states Monday in planning to file a lawsuit against the recently passed health care bill.

Attorney General Greg Zoeller said an amended lawsuit will be filed soon in a federal court in Florida, according to the Associated Press. The lawsuit will have a cost of $50,000 and will be divided among the 14 states.

Sen. Richard Lugar requested a report from Zoeller on Jan. 5, seeking a review on the bill that had been passed by the U.S. Senate on Dec. 24.

In his report, Zoeller listed conflicts he found with the health care law, such as the requirement for U.S. residents to purchase a health care plan and fully funding the expansion of Medicaid only in Nebraska.

Gov. Mitch Daniels also stated conflicts with the health care law, saying it would raise taxes drastically on investment and small business and would harm economic prospects badly.

The expansion of Medicaid also will affect taxpayers, Daniels said, and companies that cannot afford to cover their employees will cut jobs.

David Orentlicher, professor at the Indiana University School of Law in Indianapolis, said the states' move is one motivated by politics and not by constitutional issues.

"I agree that there are things that are things that should be revised, but I think filing a lawsuit will not be effective," he said. "I think the unfortunate part is that they will spend tax dollars for their political cause."

Orentlicher said he disagreed with most of what Daniels said last week about the health care law. He said there were conflicts with the state's move, arguing there is "nothing unconstitutional with the health care law."

"They also say they will opt out. You can't do that once the Senate passes the bill and it's turned into a law. Every state has to follow," he said.

Sheila Kennedy, professor of law and public policy at IUPUI, said she did not support the planned lawsuit from the state either. She said spending more from Indiana's scarce sources was not a good move.

But states have confronted laws, declaring them unconstitutional before, Kennedy said. The case is similar to the implementation of President Franklin Delano Roosevelt's New Deal.

"It's going to take a generation, just as when they passed Medicare," he said. "This is a huge step forward."

Kennedy said she did not agree with Daniel's arguments on the issues brought with the health care law.

"He comes from the health care sector. He is one of the people that has never seen any tax being levied," she said. "What this bill does is provide assistance for small employers."

Changes in the health care law will be a gradual process, Orentlicher said. The benefits will be "more than issues with the law," he said.

"Indiana will have to pay some more, but to get a return that is more than what we give, it's a good deal," he said.