This is the Cato Daily Podcast for Wednesday, September 14th, 2011.

I'm Caleb Brown.

Some states have refused to create the so-called Obamacare exchanges required by the law and a newly discovered

glitch in the health care legislation may strengthen the argument for state's refusal

to play ball.

Michael Cannon, director of health policy studies at the Cato

Institute, comments.

The way the law works is, starting in 2014, the federal government imposes praise controls on health insurance that are going to increase the cost of health insurance for young and healthy people.

At the same time, the federal government is going to impose an individual mandate on nearly all Americans that effectively requires

those young and healthy people to buy that health insurance at those

inflated prices. One of the law of the biggest cheerleaders is MIT economist to the

biggest cheerleaders is MIT economist Jonathan Gruber.

He conducted a study of Wisconsin's individual market that estimated that

87% of that individual market would see premium increases that

average 41% as a result of those two provisions, the government price controls and the

individual mandate.

So the third thing that happens in 2014 under Obamacare is Congress makes available premium

assistance to people to help them afford these very expensive premiums.

Now even after the premium assistance,

59% of the people in Wisconsin's individual market

would see premium increases of 31% on average.

But the premium assistance is there to help people afford the very expensive coverage

...