April 6th, 2010

Obamacare Unconstitutional? Constitutionality of Healthcare Reform Bill 2010 Questioned.  According to the Merriam Webster’s online dictionary, one definition of commerce is “the exchange or buying and selling of commodities on a large scale involving transportation from place to place”.  If we add the word interstate, we have “of, connecting, or existing between two or more states especially of the United States.”

Interstate commerce has long been understood to mean transacting business across state lines.  The constitution allows the federal government to regulate interstate commerce.  As almost all insurance companies operate in multiple states, it would stand to reason that the insurance market itself is obviously contained as interstate commerce.

The main issue with those opposed to Obama Care, as it has been termed, is that people, including healthy people are forced to buy coverage.  In order to cover all those with pre-existing conditions, you must have those healthy people paying premiums as well.  Therefore, the healthy people cannot refuse coverage, or refuse to participate in interstate commerce.  Thus, it is about the person’s choice to participate – the choice has nothing to do with regulating interstate commerce.  When a law is passed, it becomes law.  When you choose to disregard laws, you suffer the consequences of the courts.

The opposition argues that the government has so stretched the definition of interstate commerce that it can make practically anything fit the definition.  Supporters will argue that interstate commerce does exist in the insurance market; the federal government has the right to regulate it; and people should be made to follow the new laws. 

However, a more sensible way of looking at what constitutes interstate commerce may be to look at was does not constitute interstate commerce.  Perhaps a very small insurance company operating in one state – not for long though – would qualify.  In these times, in our economic, capitalistic market, everything is interstate commerce.  Surely Obama Care can fix some things…this may only be step one.  But I think everyone agrees something had to be done; maybe this is just the beginning of the reform.