Tuesday, March 27, 2012

To Have or Not to Have Mandatory Healthcare Insurance


Healthcare reform has officially been brought to the Supreme Court.  For three days, President Obama’s 2010 federal health care reform law will be the topic of contentious discussion between the nation’s 9 highest-ranking judges.  Day 2 of discussion marked a shift of attention to the most controversial issue within the healthcare law: the individual mandate.  The individual mandate requires Americans above a certain income level to either purchase a health insurance plan or pay a tax penalty, starting in 2014.  This issue has raised a red flag amongst the conservative majority of the Supreme Court that the law would give the government excessive power over individual rights.  The Interstate Commerce Clause of the Constitution states that Congress has the power to “regulate commerce” and impose taxes to promote the general welfare; however, conservative Justices warn that Congress should not have the power to regulate inactivity in a market as such a ruling would open up the possibility of requiring Americans to buy other products, like broccoli.

Justice Kennedy, who often provides the decisive vote, is troubled by the fact that it seems Congress is changing "the relationship of the federal government to the individual in a very fundamental way" by forcing Americans to buy a product like insurance for the first time.  Chief Justice John G. Roberts Jr. shared Justice Kennedy’s skepticism saying that the Constitution puts limits on federal power, limits which would be eliminated if the federal government required Americans to purchase health insurance.  He argues that healthcare is not unique because individuals could face any medical emergency at any time and the law would require people to purchase medical insurance covering services they may not need.  Therefore, forcing Americans to purchase healthcare insurance would be forcing healthy people to provide a huge subsidy to private insurance companies.  In other words, people who don’t participate in the healthcare market would inevitably make it much more expensive for those who do.  On the other hand, Justice Stephen Breyer argued that participation in healthcare is not optional because every individual will seek some medical service at some time in his/her life, regardless of whether or not he/she is insured.  Justice Verrilli shared Justice Breyer’s point of view, adding that healthcare is a market in which “virtually everyone participates,” so the mandate would just be a "regulation of their participation in [the healthcare] market.”

It will be interesting to see how the Supreme Court will rule on this issue.  Precedence seems to be in favor of upholding the insurance mandate since the Supreme Court has not struck down a major federal regulatory law, on the grounds that it grants excessive federal power, since 1936.  But, the law faces tough competition from the conservative judges, who hold the majority (5-4), on the Supreme Court.  
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