The new fight over Obamacare

A Virginia court decision has ignited constitutional questions, while states seek to roll back Obama’s health care reform

by Luiza Ch. Savage on Wednesday, August 18, 2010 11:00am - 0 Comments

Luke Sharrett/The New York Times/ Charlie Riedel/AP/ Carrie Devorah/WENN.com/NEWSCOM

The Obama administration’s health care reform survived hostile town halls, Tea Party protests, and a year of bitter political combat in the U.S. Congress before it was signed into law in March. But now it faces yet another hurdle: a constitutional challenge to what the administration calls its “linchpin” provision. Rather than providing a single government-administered insurance plan the way Canada does, the Obama reform attempts to achieve near-universal coverage by requiring all Americans to buy private health insurance for themselves and their families. Individuals who cannot afford to pay premiums will be subsidized by the government; those who fail to do so will be fined up to US$750. This so-called “individual mandate” begins to phase in in 2014.

The Obama administration says the individual mandate is necessary to control health care costs for everyone. As long as health insurance remains optional, the young and the healthy will avoid paying in, and insurance companies will charge more to cover the relatively older and sicker population. And, without the mandatory coverage provision, other parts of the law—such as a ban on denying coverage based on pre-existing medical conditions—wouldn’t work either, because they would encourage individuals to wait to purchase health insurance until they needed care, which in turn would shift even greater costs onto everyone else.

But opponents of the bill aren’t arguing over its mechanics. When the law was being debated in Congress, they charged simply that nothing in the U.S. Constitution gives the federal government the power to force individuals to buy something. Republican Sen. Jim DeMint of South Carolina called it an “arrogant power grab” and a “trillion-dollar assault on our freedoms.”

After the law was passed, attorneys general in 21 states sued the federal government, arguing that Congress exceeded its constitutional powers. Their critique was dismissed by supporters of the reform as extremist. Democratic Sen. Patrick Leahy of Vermont, chairman of the Senate judiciary committee, denounced what he called “misleading arguments and spurious attacks” that would “stand the Constitution on its head.” “I think there’s pretty longstanding precedent on the constitutionality of this,” said White House spokesman Robert Gibbs. But last week, in one such lawsuit, a federal judge in Richmond, Va., ruled that the issue is far from settled. In doing so, he re-energized a political movement at the state level that seeks to exempt swathes of the country from application of the health care law and to roll back Obama’s signature achievement.

Voters in Missouri voted overwhelming in a referendum last week in favour of the state’s Health Care Freedom Act, which would purportedly exempt the state from the individual mandate—reviving the arguments over whether states have the power to nullify federal laws that had seemed to be settled by the Civil War. Several states have passed similar legislation, and some others, including Arizona and Oklahoma, will put the issue to a vote on the ballot on Election Day in November.

Virginia’s attorney general, Kenneth Cuccinelli, launched his lawsuit as soon as the law was signed in March. He argued that the health care mandate is not authorized by any of the specific federal powers spelled out in the U.S. Constitution, which reserves general lawmaking powers to the states. A former Republican state senator, Cuccinelli has also challenged the right of the federal government to regulate greenhouse gases, denied legal protections to gays and lesbians, and authorized law enforcement to check the immigration status of anyone they stop. The Obama administration responded that the law falls clearly under the federal power to regulate interstate commerce and asked the judge to dismiss the suit on the grounds that the case was so weak there was no point in holding a trial. But on Aug. 2, U.S. district judge Henry Hudson declined to dismiss the case. In a written opinion, he said the power of Congress to force individuals to buy health insurance was far from obvious, and there would be plenty to litigate.

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  • jdude

    "Individuals who cannot afford to pay premiums will be subsidized by the government; those who fail to do so will be fined up to US$750."

    I think that right there is going to smash Obama's mandate

  • Olaf

    Great piece, Luiza, thanks.

  • Ryan

    "Sometimes, you simply cannot force water down the throat of a horse no matter how badly they need it. "

    How about dropping the arrogant tone and understand that Americans value true freedom from government oppression.

    They know what they want and it is not government healthcare.

    • wictorwictor

      Good for them, standing up to their oppressors. Instead, they will be oppressed by unaccountable corporations. Now that's my kind of freedom!

      • Pele

        Why does it have to be a choice between repressive governments (like Obama's) and repressive Corporations?

        Why not a government that "referees" the free economy with minimal-but-effective rules that maximize the potential for every citizen to live life to the fullest?

        Bush may have been a failure. Obama is fast turning into a failure.

      • Idea Man

        What they should do is cancel Medicare and Medicaid. That would probably help with the deficit and presumably have the support of the Tea Party.

  • Philanthropist

    70% of all taxes collected in Ontario will go to 'health care' in a few years, combine that with the 50% of all taxes going to the bloated 'education system' and pretty soon there's a problem, even if corrupt Liberal math is used, it's called bankruptcy. Rational Americans are smart enough to see writing like that on the wall because as we all know, socialism fails, everywhere it's been tried, every time, the socialist idea is a failure.

    Why does socialism fail every time? It ignores the hard core fact that every person is self-interested and will not work for someone else for free. Politicians know this but they can use socialism to control the suckers that vote for them, so they like it very much indeed.

    • Idea Man

      Corporate welfare is the only form of socialism that works. Hopefully, Obama will extend the Bush tax cuts because, if he doesn't, the titans of industry on Wall Street, automakers and the defense industry might have to pay more taxes. This will cause the trickle down to slow and cause massive unemployment.

      Do I have the Fox/Palin talking points down correctly?

  • Jetro

    You can argue till you're blue in the face that socialism has failed, just like capitalism, communism, monarchy, dictatorship and any other form of government. The American public is poorly educated and ill informed on vast number of topics. When they argue that they don't want any new taxes while anyone with a brain can see that their deficit is spiraling out of control which threatens to destroy the world economy. Or when they buy the excuse that they need to give up their fundamental rights in order to protect themselves against would-be terrorist when you can count on one hand the amount of times the Americans have been hit by terrorist acts on their home soil by foreigners. If Americans are stupid enough to believe that Obama care isn't a step in the right direct, then they only have themselves to blame when more and more companies pick up and leave to go elsewhere for cheaper labour and less environmental restrictions, then they can all work at McJobs that have zero benefits while the elite roll in both the cash and protection.

    • Pele

      Mcjobs may suck. Obamacare isn't the answer.

      Quite simply, it's immoral for a government to force someone to buy something that they don't want to buy; even if it's good for them. Your average North American feels invaded when fines or jail is threatened unless we conform. That's not a knee-jerk reaction, that's just our love for democracy kicking in.

    • jdude

      Actually I would argue that taxation is illegitimate in the first place. Further to state that the american public " is poorly educated and ill informed on vast number of topics" is relative and somewhat ignorant.

    • David

      Socialism and communism did fail, but capitalism hasn't at all. Whenever it REALLY has been tried, it succeeded. The problem with the deficit is the ridiculous over-spending by the federal government and a lot of it is outright waste. We don't need a Dept of Education, Dept of Labor, a Dept of Energy, a Dept of Housing & Urban Development. Get rid of that and we can save at least $1 trillion. & frankly the #1 job of the federal government is to protect us from dangers from abroad. Remember 9/11? Obamacare is a disaster as it is based upon the disastrous failure of MA health care. The Boston Globe acknowledged its failure and that is a Liberal source. Get government out of the picture and that will be a step in the right direction. More government means more failure.

  • madeyoulook

    This is a superb summary of the issue.

    Opponents of ObamaCare have argued that costs could have been lowered by lifting the ban on buying health insurance from out of state, since that would have arguably increased competition for customers. Presumably, such a measure would obviously satisfy the "interstate commerce" aspect. Somewhere in the hundreds of pages of the new law (I wonder if the elected officials in the House and Senate have yet had a chance to read it…), has the inter-state-purchase prohibition been lifted?

  • Jeet

    A failure of colossal proportions another whack at theoretical socialism. Those on the left want Utopia and they want someone else to pay for it. The two main screw-ups with Obama and healthcare are his refusal to deal with torte reform as he must be in the pocket of lawyers and his refusal to permit cross State insurance quotes. The other problem no one talks about and it is a reality in Canuckistan as well is the greed of virtually everyone in the medial industry. The latter is the greatest threat to society.

    • Richard

      Torte reform? Like what, adding more chocolate? Creamier icing?

      The failure of Obama's health bill, should this court challenge succeed, is that he never brought in a single payer option. Ironic, given your comments, that the most likely challenge to this bill is the fact that you cannot force citizens to participate in a capitalist healthcare system. Under a single payer system, this challenge would have no leg to stand on…

  • Aberhart

    Before the question of public expenditure is the question of monetary reform. $400 billion annual on interest. In 2015, the estimated interest due – $533 billion – will be equal to a third of the federal income taxes expected to be paid that year. The American states united are unsustainable.

  • http://sweetbearies.com Bearie

    Universal health care is a good thing, and too bad so many feel for the lies promoted by corporations that profit from the current system that does not work, and politicians that are former insurance agents. Health care reform needed to go farther actually.

    • David

      Universal health care is a doomed failure. We tried it in 4 states(HI for children only, TN twice, ME, & MA) and they all ended in failure and bankruptcy. Those aren't lies from corporations, but the truth. In Canada, UK and elsewhere they are privatizing due to no more money to pay for it. Frankly I won't pay and neither will millions of others a service forced upon us to pay for. Maybe government should force you to clean your neighbors' homes and then force you to pay for the cleaning too, if you think that forcing someone to pay for a good or service is a good idea. The government forcing people to purchase a good or service even if it is beneficial is a severe undermining of our liberty that nullifies our total liberty. If you want to live in tyranny & slavery, go ahead. Pack your bags & go to N Korea, but don't drag the rest of us with you.

  • non-partisan

    Yup. "Freedom" is working out really well financially for California and a bunch of other states that aren't allowed to raise taxes and are about to go bankrupt. So in addition to not having health care, they also wont have roads, police, fire service, water etc. Enjoy your freedom; its going to look a lot like anarchy. Taxes are the price we pay for living in a free society.

  • Tony N

    Pele says: “…its immoral for a government to force someone to buy something…”

    Did Americans ever approve of the US military invading the Middle East which cost the American taxpayer BILLIONS of dollars? Get with it America. Healthcare before Warfare. Its about time.

  • Oliver

    Wait, I don't drive but aren't you forced by governments to own insurance for your vehicle?
    Now this isn't quite the same since vehicle insurance is mostly about protecting the individuals in an accident whereas Obamacare (that name has grown on me) is about helping the country control cost; however since the political battle is about government forcing people to buy things, based on those grounds couldn't the government say "if this isn't right, then what about car insurance?"

    • Steve M

      People can choose not to own a car if they object strongly enough to car insurance. It might be inconvenient, but it's certainly doable. There is no such option with mandatory health insurance, short of leaving the country.

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