Ariz. AG won't join challenges to health overhaul

By PAUL DAVENPORT

PHOENIX

Arizona's Democratic Attorney General Terry Goddard said Wednesday he won't join lawsuits filed by other states' attorneys general to challenge the federal health care overhaul, but Republican Gov. Jan Brewer plans to pursue a lawsuit even without Goddard's involvement.

"It's disappointing that the people of Arizona won't have this opportunity to be represented by the attorney general," Brewer spokesman Paul Senseman said. "Thankfully it's not a dead end."

Goddard said constitutional law experts on his staff and many other legal experts think the challenges have little chance of success.

That means participation by Arizona would waste tax dollars, Goddard said, adding that the challenges can be considered by federal courts "with or without Arizona's participation."

Senseman said Wednesday the governor's office believes it has the authority to sue on behalf of the state, but Brewer may call a special legislative session next week so lawmakers could pass a new law removing doubt.

House Speaker Kirk Adams, R-Mesa, said later he hadn't yet discussed that possibility with Brewer's office.

House Minority Leader David Lujan, a former assistant attorney general and a candidate for the Democratic nomination for attorney general, said it's an unsettled legal question whether the governor can sue on behalf of the state without agreement by the attorney general.

Brewer in December urged Goddard to review the legality of the then-pending federal overhaul legislation for a possible legal challenge.

She said parts are unconstitutional and push costly mandates onto the state -- a stance she has reiterated since it was passed by Congress and signed by President Barack Obama.

Goddard declined, saying it would be premature.

Brewer more recently said she would "coordinate with the other state attorneys general on behalf of Arizona" to challenge the provisions she contends are unconstitutional.

Goddard is the presumptive Democratic nominee for governor. He would face Brewer in the general election if she wins the contested Republican primary.

Also Wednesday, an senior official of the state's Medicaid program confirmed that the planned dropping of 310,000 people from eligibility for Arizona Health Care Cost Containment System coverage in January can't proceed under the overhaul legislation.

That determination was based on a legal interpretation of the federal legislation and past federal guidance on similar questions related to so-called "maintenance of effort" requirements for continuance of current services, said Monica Coury, an AHCCCS assistant director.

Other state officials had said previously they thought that was the case.

Arizona is among the states whose federal Medicaid funding will increase starting in 2014, but Brewer has said the state cannot afford to keep its current services in the meantime.

The planned reduction of AHCCCS eligibility in January and the separate elimination of the KidsCare children's health program in June had been expected to save the state approximately $400 million in the next state budget.

Goddard, in his statement Wednesday, called on Brewer "to focus Arizona's efforts on restoring KidsCare and requalifying for the billions of federal dollars we will lose if that crucial program is lost."

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Associated Press reporter Jonathan J. Cooper contributed to this report.