Saturday, December 26, 2009
An Impossible Situation: Reid’s Unhealthy Care
Several leading legal scholars and professors of law have made the strong case that the US Senate’s version of “unhealthy care” legislation is not likely pass Constitutional challenges. In essence, the legal argument is made that the proposed Health Care insurance mandates and excessive regulation coupled with “defacto price controls” on health insurance create a scheme in which the health insurance business is regulated like a public utility. Given that perspective, in light of case law in the United States at the US Supreme Court level, it is likely that significant legal challenges will result based on the regulatory framework of Reid’s unhealthy care legislation.
Given the preceding argument by Mr. Epstein, he goes on to state why this conundrum for the health insurers combined with case law on the regulation of public utilities will set the stage for numerous legal challenges, of both the legislation and the administration by state and Federal agencies. Simply, the complex scheme of “defacto price controls”, heavy regulation, government mandates and bureaucratic red tap found in the Reid bill that came out of the US Senate is likely not to pass the “reasonable person” or US Constitutional test.
Excerpt from Article: Impermissible Ratemaking in Health-Insurance Reform: Why the Reid Bill is Unconstitutional By Richard A. Epstein Manhattan Institute, NY
Richard A. Epstein is the James Parker Hall Distinguished Service Professor of Law at the University of Chicago, the Peter and Kirstin Bedford Senior Fellow at the Hoover Institution, a visiting professor at the NYU Law School, and a visiting scholar at the Manhattan Institute.