President Obama is all set to punish residents of states that don’t comply with his tyrannical Obamacare program, the Department of Health and Human Services proclaimed Friday. Under Obamacare, states are asked to set up insurance exchanges.

Those exchanges require participating insurers to meet certain qualifications and guidelines; in order for those exchanges to be loss-neutral, though, millions of citizens must enroll in the state health care exchanges. To make all of that work, the federal government foots a small percentage of the bill for a very short period of time – but within a few years, the states foot billions in additional spending, since they must expand their state Medicaid coverage.

States that choose not to participate will now be punished. The federal government will set up its own healthcare exchanges in the states, and insurance companies taking part will have to pay an additional 3.5% of their premiums to the feds. That price will be passed on to consumers, making coverage that much more expensive.