TEXAS — Texas will not expand Medicaid or establish a health insurance exchange, two major tenets of the federal health reform that the U.S. Supreme Court upheld last month, Gov. Rick Perry said in an early morning announcement.

"I stand proudly with the growing chorus of governors who reject the Obamacare power grab," he said in a statement. "Neither a 'state' exchange nor the expansion of Medicaid under this program would result in better 'patient protection' or in more 'affordable care.' They would only make Texas a mere appendage of the federal government when it comes to health care."

Perry's office said he's sending a letter to U.S. Health and Human Services Secretary Kathleen Sebelius this morning asserting his opposition, both to accepting more than a hundred million federal dollars to put more poor Texas adults onto Medicaid, and to creating an Orbitz-style online insurance marketplace for consumers.

The U.S. Supreme Court has ruled that states — even Texas, which has the country's highest rate of the uninsured — may not be punished for opting out of the Medicaid. The insurance exchange is not optional; if Texas doesn't devise its own, the feds will establish a one-size-fits-all program for the state.

“If anyone was in doubt, we in Texas have no intention to implement so-called state exchanges or to expand Medicaid under Obamacare," Perry said in a statement. "I will not be party to socializing healthcare and bankrupting my state in direct contradiction to our Constitution and our founding principles of limited government."

The governor will appear on Fox News at 10:30 a.m. to talk more about his decision.

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