Tuesday, December 14, 2010

Virginia, Judge Hudson, Just Said No!!.....To The Individual Mandate

In Virginia, U.S District Court Judge Henry Hudson stated in a 42 page opinion that "Neither the Supreme Court nor any court of appeals has extended Commerce Clause powers to compel an individual to involuntarily enter the stream of commerce by purchasing a commodity in the private market". 

In other words, Judge Hudson, a 2002 republican appointee from former President George W. Bush, was the first federal Judge to "Just Say No" to the Individual Mandate.  However, two other Judges from Virginia and Michigan have upheld the law.  Both of these Judges are Democrat appointees. 

According to incoming Speaker of the House, John Boehner, "Cash-strapped states should carefully weigh the benefits of investing time and resources in Obamacare's implementation now that its central mandate (Individual Mandate) has been ruled unconstitutional.

So what does this mean?  Well since Judge Hudson only ruled against the Individual Mandate it means that the Federal Government can go ahead with setting up the rest of the legislation. And it seems that the White House isn't going to be eager to have this pushed to the Supreme Court where Republicans hold a 5-4 majority.  It could take as long as two years for it to finally arrive.

Also, this could mean that if the Individual Mandate is taken off the table, we are pretty much where we are now, except, all coverage will be guaranteed issue, which is "no questions asked health insurance".  Therefore, most of the people who get coverage will be the ones who need it.  And, as the health reform law is set-up, they will be able to get it any time they want, so why pay for it now when they don't need it?  Moreover, if only the people who need coverage are getting it, there will be huge adverse selection issues.  In turn, premiums will skyrocket and we could be in much, much worse shape than we are now. 

In addition, there is also a lawsuit that has been filed in Florida that has 20 states backing it and being heard by U.S. District Judge Roger Vinson.  The lawsuit states that the $2.5 Trillion  Health Care reform pushed through by the Obama Administration violates state government rights and would force huge spending requirements on already cash-strapped state governments.  The case is set to be heard on Thursday, December 16, 2010.