Another Point to the Scorecard Against the Health Care Law

This article is FULL of some amazing quotes that I plan to keep for future reference.  I can’t decide which quote I like best, but I love the Judge Vinson’s comparison of PPACA to a watch:

“The Act, like a defectively designed watch, needs to be redesigned and reconstructed by the watchmaker.”

And the lawyer makes a great point with gym memberships, though the broccoli consumption may be a little bit far:

The plaintiffs in the Florida case characterized the insurance requirement as an unprecedented attempt to regulate inactivity because citizens would be assessed an income tax penalty for failing to purchase a product. Their lawyers argued that there effectively would be no limits on federal authority, and raised the specter of government-mandated gym memberships and broccoli consumption.

But my favorite here is the argument that was made that the health insurance mandate protects the pools by preventing people from only enrolling when they are sick.  Nopeople will just pay the fine when they are healthy because the fine is less than the premiums are going to be, and then they’ll enroll when they are sick, which will do the same ‘death spiral’ for the industry:

The Obama administration argues that the insurance mandate is essential to its goals of covering more than 30 million uninsured and offering protections to those with pre-existing health conditions. Unless everyone is required to have insurance, the administration contends, consumers might simply wait until they are sick to enroll, undercutting the actuarial soundness of risk pooling and leading to an industry “death spiral.”

By the way, that ‘death spiral’ really just means premiums will go sky high and only the large, government backed companies will hold on.  I’m glad they can admit that this will happen, but they still can’t see it will happen either way.

So for those of you keeping track, Virginia and Florida have now ruled against PPACA as it stands now.  If you aren’t sure why, Judge Vinson has the BEST summary I’ve read:

“If Congress can penalize a passive individual for failing to engage in commerce, the enumeration of powers in the Constitution would have been in vain.”    

 

From the NY Times:

A second federal judge ruled on Monday that it was unconstitutional for Congress to enact a health care law that requires Americans to obtain commercial insurance, evening the score at two-to-two in the lower courts as conflicting opinions begin their path to the Supreme Court.

Unlike a Virginia judge in December, Judge Roger Vinson of Federal District Court in Pensacola, Fla., concluded that the insurance requirement was so essential to the workings of the Affordable Care Act that its unconstitutionality required that the entire Obama health care law be invalidated.

Read Full Story

3 responses

Obamacare doesn’t ONCE mention how insurance companies can compete across state lines or how to strengthen HSAs. Insurance should be a secondary mode of payment – only for catastrophes. I’ve heard people criticize HSAs but those are people who just want someone else footing the bill. Medical Care should be truly competitive – loot at what Dr. Smith has done in Oklahoma City.

Leave a Reply

*

Be sure to include your first and last name.

If you don't have one, no problem! Just leave this blank.