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Benefits - Healthcare Reform is Unconstitutional

Posted by Nancy Saperstone on Tue, Dec 14, 2010 @ 12:02 PM
  
  
  

Yesterday U.S. District Judge Henry Hudson determined that the national healthcare reform bill is unconstitutional because it requires people to buy health insurance and “exceeds the constitutional boundaries of congressional power.”  In his ruling he stated that requiring individuals to buy insurance “would invite unbridled exercise of federal police powers.”  His ruling also stated that “this dispute is not simply about regulating the business of insurance — or crafting a scheme of universal health insurance coverage — it’s about an individual’s right to choose to participate.”  So what does this mean to the current national healthcare reform that is on the books?

  • It’s likely that this issue will be decided by a higher court and possibly even reach the Supreme Court;
  • Several other suits on the same topic are pending, while others have been dismissed;
  • This is the first ruling by a federal judge on the topic;
  • The White House is expected to lose this round;
  • White House feels like this has little impact given the mandate doesn’t take effect until 2014.

As an employer, dealing with the rising cost of benefits, what are you thoughts on requiring people to buy health insurance?

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COMMENTS

Judge Henry Hudson's ruling is not the first federal judge ruling on this topic. Two other district court judges, one in Michigan and another in Virginia, have ruled the mandate constitutional. The core of Judge Hudson's ruling is that a requirement in the law that people buy health insurance in 2014 or pay a penalty is unconstitutional because it exceeds congressional powers to regulate interstate commerce or to impose taxes for the general welfare. The fact is Medicare and Social Security are constitutional, despite the fact that they in effect leave Americans no choice but to buy a particular product, namely, government health insurance for the elderly and a government pension plan. In this case the new legislation leaves Americans increased options since they will be free to buy a healthcare plan of their own choosing. Consequently, greater choice offered by the health care act makes it at least as constitutional as Medicare and Social Security.

posted @ Thursday, December 16, 2010 6:12 PM by John E. Baer


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