I enjoy a good wager. But, my maximum bet, no matter how consequential the topic, is $1. This weekend, I bet my attorney brother-in-law my maximum bet that the Supreme Court would uphold the health care reform law.
He argued that it was clearly unconstitutional, and reminded me of high school civics lessons about federalism. The federal government is constitutionally designed to have clearly enumerated, limited powers. Those powers include the ability to levy taxes. And, they include the power to regulate inter-state commerce. But, explained my brother-in-law, they don’t include the power to compel commerce. So, they can’t make people buy health insurance. All other powers are retained by the states and by the people. According to this view, the constitution would allow a state to pass a law mandating that people buy health insurance, as was done in Massachusetts. And, Congress could have passed a law that created a government-run health program and levied taxes to pay for it, as was done with Medicare. And, Congress could have passed a law that levied taxes to pay for subsidies for insurance companies to compensate for the losses they would experience from being forced to issue insurance to everyone, regardless of prior medical conditions. But, the authors of the health care reform legislation apparently felt that increasing taxes was politically infeasible, particularly given growing concerns about unsustainable government deficit spending.
The Supreme Court held three days of oral arguments for the case this week. The meat of the issue was discussed on day 2, Tuesday, March 22nd. One hundred and eleven double-spaced pages of discussion that was an interesting read. Justice Kennedy, the one thought to be the likely swing vote needed to join the more liberal justices in upholding the health care reform law, described the government as being “dishonest” in doing something that required the use of its power to levy taxes without admitting that it was a tax or framing it as a tax. Kennedy found the health care reform law to be “disturbing” in that it “required the individual to do an affirmative act” in purchasing insurance and entering the market for health care insurance. He noted that this is against our longstanding legal principles, and pointed out that the law does not even obligate people to save a blind person that they see walking in front of a car (unless they have certain types of relationships with the blind person). Kennedy argued that the law “changes the relationship of the Federal Government to the individual in a very fundamental way,” and therefore the government should have a “heavy burden of justification.” Not exactly inspiring confidence that Justice Kennedy intends to be that cross-over vote to uphold the law.
The government’s defense of the reform law was delivered by Solicitor General Donald Verrilli, who delivered amazingly incoherent testimony. The Justices were grilling Verrilli to explain a “limiting principle” — some concept that applies to this law, but not to other situations so as to prevent this law from establishing a precedent that broadly expands federal government power. Verrilli argued that, although the law is about health care insurance, insurance only serves the purpose of “financing” health care itself. So, receiving health care and purchasing health care insurance are tied together. The government argued that everyone is likely to require health care at some point. Somehow, from those two points, the government argues that everyone is already in the health insurance market, even before they buy health insurance. So, the law is therefore not compelling someone to enter the health insurance market. Verrilli argued that the health care market (the one that is inextricably tied to the health insurance market) is distinguished from all other markets in that “people cannot generally control when they enter that market or what they need when they enter that market.” One after another, the Justices questioned this reasoning and offered many examples of other markets that have the same characteristics, such as the market for burial services.
The liberal Justices tried to come to Verrilli’s rescue. Justice Ginsberg coached Verrilli that his main argument for the uniqueness of health care was that it is a market where, “even though you have every intent in the world to self-insure, to save for it, when disaster strikes, you may not have the money. Then, when you need health care, you have no choice whether or not to buy the product.” Other’s emphasized that the longstanding tradition in our culture is that health care services are delivered without regard to the ability of the sick person to pay. Therefore, one person’s decision to not buy health insurance affects other people. However, the Justices pointed out that this was true in virtually all markets — if I decide to not buy a car, that affects the economic well-being of the people that work for car companies.
I went into the week confident that the constitutional challenge to the health care reform law was just a bump in the road. Just a desperate Hail Mary pass by those against health care reform. But, I’m taking a dollar bill out of my wallet and setting it aside, ready to pay my brother-in-law in case he wins the bet.Read More