Strike one against ObamaCare

Today’s ruling by a federal judge in Virginia, declaring the health-insurance mandate in ObamaCare unconstitutional, is not the last word by any means. But to paraphrase Vice President Biden’s line about the law, it’s a big bleepin’ deal.

This isn’t the big states’ lawsuit against the federal government over the law; Georgia and 20 other states are pursuing a lawsuit working its way through federal courts in Florida. It is, however, the lawsuit that addresses the constitutional question that so many conservatives raised during the health-reform debate: Can the federal government compel citizens to buy a particular product (in this case, health insurance)?

I haven’t read the whole decision yet, but this line of reasoning from District Judge Henry E. Hudson seems to get at the crux of the matter, in which the Obama administration argued that the Commerce Clause of the U.S. Constitution does grant the federal government this power to mandate purchasing health insurance (quote is from an Associated Press story on the ruling):

“Of course, the same reasoning could apply to transportation, housing or nutritional decisions,” Hudson wrote. “This broad definition of the economic activity subject to congressional regulation lacks logical limitation” and is unsupported by previous legal cases around the Commerce Clause.

Some of the early criticism of the ruling focuses on the use of the words “activity” and “inactivity.” As Washington & Lee’s Timothy Jost told The Wall Street Journal:

Judge Hudson has effectively rewritten the Commerce Clause, which nowhere contains the word “activity.” In the other major Commerce Clause cases of the 20th century . . . the party challenging the statute claimed to be outside of the stream of commerce, but the Supreme Court held that the party nevertheless had an effect on interstate commerce. The decision not to insure is not “inactivity,” as Judges [Norman] Moon and [George] Steeh have already held [in other challenges to the health law]. It is a decision that results in the transfer of billions of dollars in costs annually. It is commerce, and Congress can regulate it.

But Moon and Steeh are simply other district court judges; their word does not trump Hudson’s (just as his alone does not trump theirs). As everyone realizes, this question will go all the way to the Supreme Court, and the question appears to be this: If the decision not to participate in a market “is commerce,” what is not commerce? And whatever “not commerce” is, can Congress also regulate that?

The idea that Congress can force Americans to participate in a market, and then tell them how to participate in it, is completely at odds with a document intended to limit the reach of the federal government. An enumerated power almost by definition cannot be unlimited. So, where is the limit?

Stay tuned.

– By Kyle Wingfield

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97 comments Add your comment

Jimmy62

December 13th, 2010
3:44 pm

The limits of government power are obvious. Anything the liberals want to do is ok under the Constitution, and anything the conservatives want to do is limited and outside the power granted to government. Unless it’s plainly written in the Constitution. Then it’s outside the power of government due to penumbras and auras around words. Unless a liberal favors it, then it can be strictly against the law, but it’s ok, since it’s a living, breathing document. Unfortunately it has to breath in all this carbon dioxide causing global warming.

Jefferson

December 13th, 2010
3:45 pm

You rich kids are all alike.

ForLiberty

December 13th, 2010
4:01 pm

Now if we can just impeach him.

BW

December 13th, 2010
4:03 pm

Kyle

It’ll be interesting to hear what the Supreme Court has to say or even when it will happen. In the meantime the existing status quo was not a better option. Seeing as the main linchpin, the individual mandate, was a Republican (maybe even a conservative) idea I don’t see any other viable options if the law is struck down in its entirety. In either case the cost curve is out of control regardless of whether it is rooted in “market conditions” and maybe Congress should work on that aspect at least.

BW

December 13th, 2010
4:04 pm

ForLiberty

Wake up from your wet dream.

fair and imbalanced

December 13th, 2010
4:04 pm

Kyle,

Did you sign the Party oath in blood? With an “X” no doubt.

Rafe Hollister

December 13th, 2010
4:05 pm

I’m sure our “Constitutional Scholar” President is apalled, but this is long overdue. It is probably too much to hope for that the ruling stands and some limits can be applied to this Commerce Clause which has been misinterpreted for years and has had a big part in the growth of the Federal Government. Great day for America!

Point Taken

December 13th, 2010
4:29 pm

Kyle – we are already forced into many markets (indirectly) through the collection of taxes and Congress determining how to spend them. Healthcare could be similar; either force individuals to purchase insurance or tax them (sales, income, property, whatever) and purchase it for them.

joe

December 13th, 2010
4:35 pm

No need for impeachment, just vote him out in 2012 and all will be fine…

ByteMe

December 13th, 2010
4:41 pm

And you should completely ignore the part about Judge Hudson being a part-owner of a GOP consulting firm representing the likes of John Boehner and John McCain, because that’s immaterial to his ability to make an impartial ruling….

JDW

December 13th, 2010
4:45 pm

Section 8.

The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States;

To borrow Money on the credit of the United States;

To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes;

To establish an uniform Rule of Naturalization, and uniform Laws on the subject of Bankruptcies throughout the United States;

To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;

To provide for the Punishment of counterfeiting the Securities and current Coin of the United States;

To establish Post Offices and post Roads;

To promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries;

To constitute Tribunals inferior to the supreme Court;

To define and punish Piracies and Felonies committed on the high Seas, and Offences against the Law of Nations;

To declare War, grant Letters of Marque and Reprisal, and make Rules concerning Captures on Land and Water;

To raise and support Armies, but no Appropriation of Money to that Use shall be for a longer Term than two Years;

To provide and maintain a Navy;

To make Rules for the Government and Regulation of the land and naval Forces;

To provide for calling forth the Militia to execute the Laws of the Union, suppress Insurrections and repel Invasions;

To provide for organizing, arming, and disciplining, the Militia, and for governing such Part of them as may be employed in the Service of the United States, reserving to the States respectively, the Appointment of the Officers, and the Authority of training the Militia according to the discipline prescribed by Congress;

To exercise exclusive Legislation in all Cases whatsoever, over such District (not exceeding ten Miles square) as may, by Cession of Particular States, and the Acceptance of Congress, become the Seat of the Government of the United States, and to exercise like Authority over all Places purchased by the Consent of the Legislature of the State in which the Same shall be, for the Erection of Forts, Magazines, Arsenals, dock-Yards and other needful Buildings;–And

To make all Laws which shall be necessary and proper for carrying into Execution the foregoing Powers and all other Powers vested by this Constitution in the Government of the United States, or in any Department or Officer thereof.

In my mind two points stand out…from paragraph one “The Congress shall have Power To lay and collect Taxes” and from the last paragraph “To make all Laws which shall be necessary and proper for carrying into Execution the foregoing Powers”.

Seem pretty clear that Congress can levy and enforce taxes, including taxes on those that choose not to purchase insurance.

Looks like another case of a “Faux Conservative” trying legislate from the bench to me.

ByteMe

December 13th, 2010
4:48 pm

JDW: when you hear that conservatives want to remake our government the way it says in the constitution, they really mean the Articles of Confederation.

JDW

December 13th, 2010
4:53 pm

@ByteMe I think you got them nailed :)

John

December 13th, 2010
4:56 pm

So what about car insurance? Does this mean that I don’t have to buy it anymore?

Keep up the good fight!

December 13th, 2010
4:57 pm

Kyle….you can’t keep score? Try the Michigan Federal Court decision.

Cutty

December 13th, 2010
4:59 pm

If the federal government can’t mandate that I get health insurance, how can the state mandate that I get automobile insurance then say at a minimum i have to get liability insurance?

Finn McCool

December 13th, 2010
4:59 pm

yeah! No more buying car insurance!!!!

Pete

December 13th, 2010
4:59 pm

This is bad news for people with pre-existing conditions, those whose insurance cut them off after they made a claim, children, and those of us who resent paying for people who can afford insurance but refuse to get it and show up at the ER when they get sick.

V. Powell

December 13th, 2010
5:01 pm

Obamacare only helps 60 million uninsured people get help. It also helps the rest of the nation, 60 million people do not have to file for bankruptcy because they cannot pay their medical bill.

Ayn Rant

December 13th, 2010
5:01 pm

All Americans who do not have health care coverage should pay about $!5 per month as an “Emergency Medicare Care Premium”. It is misleading to call it a penalty or tax.

You see, every American can obtain emergency medical care as needed, even if he doesn’t have medical insurance coverage or the ability to pay. It’s the law, and it’s right.

Presently, the unpaid emergency medical costs are passed on to those who do have health care insurance and to the government. That’s not right. Those who do not have medical coverage should pay the premium for the emergency medical care coverage, which they in fact have, and can never relinquish in a civilized society.

Let’s make the freeloaders pay their fair share!

Pete

December 13th, 2010
5:02 pm

And by the way, this mandate was a Republican idea until Obama used it in his health care legislation. Is that not hypocritcal?

Kyle Wingfield

December 13th, 2010
5:03 pm

JDW @ 4:45: Then why did Congress call it a penalty, rather than a tax, in the law? (PPACA, Section 1501)

Cutty @ 4:59: Among other reasons: The state does not require you to get automobile insurance unless you have a car; ObamaCare allows for no such choice.

b

December 13th, 2010
5:04 pm

What is needed is a fair procedure for the ascertainment of liability between government and the taxpayer. What is needed is more tax specialists in Congress. A specialist learns more and more about less and less. We should not try to give the appearance of reality to visions that will only disappoint.

Now , all of the above being said, if wikileaks were to give people around the earth a peak into the creative ways that government approaches the federal deficit then everybody could try it and see how they make out.

Remember government does not create wealth, it dissipates it. “men should be taught as if you taught them not, and things unknown, proposed as things forgot.”

gog

December 13th, 2010
5:06 pm

If the govt. can’t force individuals to purchase health insurance, how can it force people to buy/contribute into medicare?

Context is key

December 13th, 2010
5:07 pm

JDW: Use the quote in full:

“The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States”

The “tax” of which you speak would not fit into the allowable expenditure categories. It would not be levied in order to spent on Debts, defense, or welfare; it would be a punitive measure. It is also supposed to be for the United States, not the people of the United States. Important distinction.

By your logic, the Congress could tax any activity it wanted at any level it wanted in order force behaviors. Talk about missing the forest for the trees – what part of early American history gives you the idea that the Founders would have gone for that idea? The whole constitution is there to LIMIT federal power, not give it carte blanche. Where do you draw the line?

Kyle Wingfield

December 13th, 2010
5:08 pm

V. Powell @ 5:01: So now it’s 60 million? Next month I guess it’ll be 80 million…the number does seem to grow inexorably, correlating only to liberals’ desperation in defending ObamaCare.

Kyle Wingfield

December 13th, 2010
5:11 pm

gog @ 5:06: Levying a tax to pay for a government program is not nearly the same thing as enforcing a penalty for not purchasing a private good or service.

You Missed the Important Part, Kyle

December 13th, 2010
5:15 pm

Kyle,

You missed the huge part that affects the conservative pipe dream about wiping out Obamacare with one swing – that bringing down the mandate means killing the whole thing.

In the same ruling, Judge Hudson said that the rest of the bill could stand, even if the mandate was concluded to be unconstitutional. Per TPM:

“It would be virtually impossible within the present record to determine whether Congress would have passed this bill, encompassing a wide variety of topics related and unrelated to heath care, without Section 1501,” Hudson ruled. Therefore, Hudson said the court would “sever with circumspection” the “problematic portions while leaving the remainder intact.”

He ruled that Obamacare could survive without the mandate.

So, yeah, strike one, not so much.

Kyle Wingfield

December 13th, 2010
5:18 pm

You Missed @ 5:15: The Supreme Court will be the final arbiter of that aspect of the case as well as the others. So we’ll have to wait and see. That’s why I said it was just strike one.

Kyle Wingfield

December 13th, 2010
5:22 pm

Re: My 5:03 comment — it’s actually in Section 5000a of PPACA, which follows Section 1500.

Eric

December 13th, 2010
5:24 pm

Kyle, though I don’t agree with your views on school vouchers and privatizing education, I do agree with you on Obamacare. I’m currently working part-time to make ends meet. How does Mr. Obama (or anyone else) think I could possibly have extra money to suddenly buy health insurance. (For the record, I’ve never used the emergency room). Thanks for bringing all this to our attention.

Mountain Man

December 13th, 2010
5:25 pm

So if this part of the Health Reform is declared unconstitutional, if all persons cannot be required to purchase insurances, then the part about requiring insurance companies to give all persons insurance despite previous conditions will have to go also. Otherwise, everyone will just wait until they have an expensive disease and then purchase insurance. This is something that Republicans recognized a long time ago. If this goes through, then I think we need a law that says if a person does not buy insurance and can’t pay for their medical care UP FRONT, then hospitals should not be allowed to treat them. It is not fair to the rest of us for hospitals to treat these “freeloaders” (usually young entrepreneurs who do not want to pay free-market rates for insurance and think they won’t need it),and then add it to our hospital bills. They should be set on the curb to DIE!!! If Republicans wanted a decent Health Care Reform Bill, then they should have been part of the process, instead of standing on the sidelines saying: we won’t vote for ANYTHING the Democrats pass.

Mountain Man

December 13th, 2010
5:30 pm

Eric at 5:24 – I am glad you haven’t been to the Emergency Room – yet. My healthy 24-year old daughter just ended up in the hospital with viral meningitis – her several days where it was not sure if she would live or die were totally unexpected. Luckily, she had purchased private health insurance, high deductible, even though she “didn’t feel she could afford it”. Her deductible was $5000, but her hospital bill was $10,000 and could have been much worse. She is now paying the $5000 bill. But if you end up in the emergency room, who will pay for your care? Me and my daughter will, that is who. Thanks a lot.

Michael H. Smith

December 13th, 2010
5:31 pm

Gotta love the Socialist Liberal desperation Kyle. Now that they are enjoying a really bad losing streak they are even more nutzo than usual. Considering the present make-up of Supreme Court lets hope the appeal case gets expedited.

JDW

December 13th, 2010
5:33 pm

@Kyle

“JDW @ 4:45: Then why did Congress call it a penalty, rather than a tax, in the law? (PPACA, Section 1501)”

Damn poor choice of words to avoid the Republican spin machine.

JDW

December 13th, 2010
5:36 pm

Kyle Wingfield

December 13th, 2010
5:03 pm
“Cutty @ 4:59: Among other reasons: The state does not require you to get automobile insurance unless you have a car; ObamaCare allows for no such choice.”

Poor analogy, once born we all have health. Should we decide we don’t want it the proper analogy is to commit another crime by ending it all. But further to the point, Obamacare does indeed allow a choice…just pay the euphemistic penalty.

Kyle Wingfield

December 13th, 2010
5:37 pm

JDW @ 5:33: I think they just wanted to have it both ways. They want to say it’s a Commerce Clause thing when they’re being accused of passing a tax, and then they want to defend the law on taxation grounds when they’re forced to explain why this fits under the Commerce Clause.

The Ghost of Lester Maddox

December 13th, 2010
5:38 pm

Sure is funny how QUICK the almightly AJC.COM yanked down the headline – or even the link – detailing this court decision.

You can BET that if the Judge had “upheld” Oh-Blah-Blah care, the entire front page of AJC.COM would have BIG screaming headlines.

I can just hear the frantic typing on Cynthia “OB-CYN” Tucker’s keyboard now – well, as soon as she gets her instructions from the White House press office on what to write.

Kyle Wingfield

December 13th, 2010
5:39 pm

JDW @ 5:36: I agree, the analogy is poor; that’s what I was trying to explain to Cutty.

JDW

December 13th, 2010
5:42 pm

@Context is key

December 13th, 2010
5:07 pm
JDW: Use the quote in full:

“The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States”

The “tax” of which you speak would not fit into the allowable expenditure categories. It would not be levied in order to spent on Debts, defense, or welfare; it would be a punitive measure. It is also supposed to be for the United States, not the people of the United States. Important distinction.

By your logic, the Congress could tax any activity it wanted at any level it wanted in order force behaviors. Talk about missing the forest for the trees – what part of early American history gives you the idea that the Founders would have gone for that idea? The whole constitution is there to LIMIT federal power, not give it carte blanche. Where do you draw the line?”

The entire quote was there, you just did not scroll up to read it…as for expenditure categories it most certainly fits under the “general Welfare of the United States”.

Yes Congress most certainly can and does tax any activity it wants at any level it wants in order force behaviors. Should you disagree your option is to elect new Representatives.

JDW

December 13th, 2010
5:43 pm

Kyle Wingfield

December 13th, 2010
5:39 pm
“JDW @ 5:36: I agree, the analogy is poor; that’s what I was trying to explain to Cutty.”

By George we agree! Time for another glass of wine!

Bob

December 13th, 2010
5:43 pm

I say let’s all get insurance and then spend at least two days aweek in the doctors office. Just pick a reason for going as it will be sure to kill all of the insurance companies.

retiredds

December 13th, 2010
5:44 pm

This from the Washington Post:

Health care: Legislating from the Bench
By E.J. Dionne

“Every judge I appoint,” George W. Bush declared, “will be a person who clearly understands the role of a judge is to interpret the law, not to legislate from the bench.”

Oh, really? Well, Judge Henry E. Hudson, a Bush appointee, has just “amended” the health-care law by striking down the provision requiring individuals to buy health insurance. That sure sounds like “legislating from the bench” to me. Aren’t the elected branches of government owed a lot of deference by the courts in enacting social policy?

Of course, the rhetoric about “legislating from the bench” is largely, well, rhetorical. When a judge tosses out a law you support, he or she is legislating from the bench. When a judge undoes a law you don’t like, he or she is just “interpreting” the Constitution.

I believe that the last paragraph is the most germane and true.

JDW

December 13th, 2010
5:48 pm

Kyle Wingfield

December 13th, 2010
5:37 pm
“JDW @ 5:33: I think they just wanted to have it both ways. They want to say it’s a Commerce Clause thing when they’re being accused of passing a tax, and then they want to defend the law on taxation grounds when they’re forced to explain why this fits under the Commerce Clause.”

xactly, that’s one of my key complaints with the lot of them. They spend too much time trying to spin and CYA rather than solving the damn problem and moving on. Its a tax pure and simple. A much better construct would have been to tax everyone and then allow those that purchase health insurance a deduction. Problem, is that would actually require a bit of fortitude which is sorely lacking in government today.

JDW

December 13th, 2010
5:50 pm

@Kyle…opps the cut and paste is off today…that said in my 5:48 I think the way they wrote it is still legal, just circumspect.

Michael H. Smith

December 13th, 2010
5:50 pm

Kyle, though I don’t agree with your views on school vouchers and privatizing education, I do agree with you on Obamacare.

I seriously doubt Kyle supports completely privatizing education, nor do I. School vouchers or letting the money follow the student, which will end the government education monopoly, gives children and parents greater choice, makes the parents get more involved, and most importantly it will make the public education compete as now public schools don’t.

On healthcare: No doubt something has to be done to reform healthcare but ObamaCare or any government healthcare is not the best answer. In fact, it is probably the worst one for a number of reasons. As one fellow (I think it was Thomas Jefferson) said: A government big enough to give you everything you want, is strong enough to take everything you have.

Kyle Wingfield

December 13th, 2010
5:54 pm

Michael H. Smith @ 5:50: You are correct.

ugadawg2005

December 13th, 2010
5:57 pm

@ Kyle Wingfield

“Cutty @ 4:59: Among other reasons: The state does not require you to get automobile insurance unless you have a car; ObamaCare allows for no such choice.”

The Patient Protection and Affordable Care Act does not require you to get health insurance unless you have a job (specifically, you are only under the mandate if you have income over the federal poverty level and coverage would cost no more than 8% of your total income). There is no law that requires you to work or to have income above the federal poverty level.

I know, you say that’s not a real choice for most Americans, but for many Americans having a car and driving is not a choice either. The sad truth is that much of this country does not have adequate public transporation and those people can’t maintain employment without an automobile. This means that the government already requires us to pay for insurance if we want to work.

John Brooks

December 13th, 2010
5:58 pm

To Mountain Man: You seem not to have watched the entirety of the political wrangling over the health care bill, prior to it being passed in Congress. The Republicans tried to be a part of the process, but the Democrats had closed door meetings, which excluded the Republicans. I do not like many of the ideas that the Republicans have, such as allowing big business to run rough shod over the people of America, but I also cannot condone the Democrats trying to force me to do something that I may not want to do. That is a violation of my civil liberties. That is what the founding fathers set up this government to try and avoid, having lived though it with the unrepresented rule of Great Britain.

There are some very simple ideas that would fix our health care problem in this country. They are as follows:

1) If you sell “insurance” to anyone in a given state, you must accept all persons in that state on the same terms and at the same price. If an insurer has a “we accept anyone at the same price” policy for a business, you must be able to buy into their plan for the same amount of money that the employer is charged on a per-person basis. That is, all plans must be “open enrollment” for everyone within the state – period. This immediately gets rid of the “tie” between employment and health “insurance”, and it also removes one of the biggest issues that small business and self-employed people face – the inability to buy insurance at any reasonable price if there has ever been anything wrong with them medically.
2) All health providers must publish a price list and may not bill or accept payment at anything other than that price; doing so becomes a violation of Robinson-Patman and exposes the provider to civil suit for treble damages. This instantly stops the practice of billing the uninsured or privately insured at a higher price than Medicare, for example – a practice that is rampant, particularly among hospitals.
3) If you show up without insurance or ability to pay with a life-threatening condition, you will be treated, but the hospital cannot cost-shift the bill – it instead bills The Federal Government. To expand on this: We have created an expectation that if you show up needing emergency treatment you will get it, irrespective of ability to pay. This creates a monstrous problem for hospitals and results in the $30 aspirin, among other outrageous distortions. The solution is to have The Federal Government receive all uninsured and unpaid bills, with the debt being immediately paid by the government. Said debt then becomes a collection item against the citizen – a debt to the Treasury, administered by the Internal Revenue Service. If you cannot pay cash, that’s fine – the IRS will be happy to take payments (at interest.) If you’re an illegal alien the Federal Government will be mandated (by statute) to collect from the other nation, and if they refuse to pay, to deduct any such amount from foreign aid of any type and source on a dollar-for-dollar basis.
4) We must reform the tort system. The trial lawyers will hate it. So what. The simplest proposal is this: you may sue only for gross negligence. If the wrong arm is amputated, you have a lawsuit. But we, as a society, must admit and accept that we call it practicing medicine, and by the very name – “practice” – we therefore admit and accept that outcomes will neither be perfect or predictable. But while we must accept that medicine is not a perfect science and outcomes cannot always be predicted, every person has a right to know their physician’s record. In exchange for this partial immunity from suits all outcomes and counts of procedures performed, by the patient’s own evaluation as to degree of success or failure, are to be published online in a searchable database for use by any person at any time in making medical decisions, and the intentional concealment or tampering with such reporting shall be made a felony. The patient’s evaluation shall be an absolutely protected form of speech.
Read the entire article that I pulled this from here: http://market-ticker.org/akcs-www?singlepost=2138483

This is not a perfect proposal, but neither party has even come close, and both are trying to play games by protecting certain special interests that they cater to.

Something else that many aren’t even aware of is the tax increase that it appears we all will be getting next year, thanks to this new law. Any employer contributed healthcare premiums will be reported as income on your W2 for the 2010 tax year. Also, there is a provision for a rather large tax being collected when you sell a house, which I believe becomes effective in 2011. For all of the liberals out there that like this law, enjoy your increased taxes and one day soon, lack of healthcare choice. To the Republicans out there that say I told you so, stop playing games and come up with a REAL solution that does not pander to the big businesses or some special interest.

pretzel logic

December 13th, 2010
5:59 pm

Kyle – Re: your previous response to the person raising the car insurance issue:

If I have no car I am not a risk to cost anyone anything on account of my car.

If I have no health insurance, and assuming I am human, I still will get sick at some point and some hospital will have to treat me and in the end that costs insured people money. Correct me if I’m wrong.