The board that’s setting up Maryland’s health insurance exchange is having trouble figuring out how to pay for it. This is only one of the many challenges that Maryland will face while establishing an exchange, and it points to the fact that the state’s quick embrace of the Affordable Care Act (aka, ObamaCare) is a huge mistake.

A health insurance exchange is supposed to help consumers compare and purchase health insurance. It’s a flawed idea but Maryland legislators passed legislation that was signed by the governor to establish one. This was in response to a provision in ObamaCare that directs states to do so.

Other states have taken a cautious course on implementing ObamaCare’s provisions. Maryland has not. This rush to enact this law in Maryland is proving troublesome. The confusion about how to pay for the exchange illustrates this.

One thing this board is considering to pay for the exchange is to have those buying insurance through the exchange to help pay for the costs. That makes a lot of sense. Those who benefit should pay for the service. However, doing this will mean a fee on either insurance policies or insurance purchases. Regardless of where it’s levied, it will lead to higher prices on insurance. The whole point of the exchange is to make insurance more affordable. A fee will work against this goal.

Another thing being considered is increasing cigarette taxes. There is already another campaign out there to raise cigarette taxes, so the board will have to battle with Vinny DeMarco over what this tax revenue goes to fund. But even if the money goes towards the insurance exchange, depending on tobacco revenue isn’t sustainable over the long run. As cigarette prices increase, fewer people smoke and more people avoid taxes. Tobacco tax revenue declines under all these scenarios and can’t pay for the continuing operation of the exchange.

Whatever the board chooses, it will be a less-than-ideal decision. The state should have waited on establishing an exchange. Let’s see what the Supreme Court rules. Let’s see if we get a new president in 2012. We don’t lose anything by waiting. That type of caution, though, isn’t popular in Annapolis. We’ll see more bad consequences from our policymakers’ failure to take it slow as the quest to implement ObamaCare continues.