The Virginia federal judge who ruled against a key component of health care reform on Monday has ties to a Republican consulting firm. Judge Henry Hudson is a co-owner of Campaign Solutions, as Amy Goodman of Democracy Now! reports.
Hudson, a President George W. Bush appointee, has earned as much as $108,000 in royalties from Campaign Solutions since 2003. A cached version of the firm’s client roster lists such vocal opponents of health reform as Sens. Mitch McConnell (R-KY), Jim DeMint (R-SC), and Olympia Snowe (R-ME), Rep. Todd Tiahrt (R-KS), the Republican National Committee and the American Medical Association.
In November, Collins and Snowe joined McConnell in signing an amicus brief to challenge the constitutionality of health care reform in a separate suit in Florida. Campaign finance records show that Campaign Solutions has also worked for Virginia Attorney General Ken Cuccinelli, who is spearheading the lawsuit. Tiahrt added an amicus brief to Cuccinelli’s lawsuit.
Today, the mandate. Tomorrow, the regulatory state?
Hudson ruled that the individual mandate of health care reform is unconstitutional. The mandate stipulates that, after 2014, everyone who doesn’t already have health insurance will have to buy some or pay a small fine. The judge argues that this requirement exceeds the federal government’s power to regulate interstate commerce.
The Commerce Clause gives the federal government the power to regulate commerce between the states and international trade. Suzy Khimm of Mother Jones explains that this clause underpins the power of the federal government to regulate the economy in any way:
But the issues at stake in Cuccinelli v. Sebelius (Ken Cuccinelli is the conservative attorney general of Virginia; Katherine Sebelius is President Barack Obama’s Secretary of Health and Human Services, or HHS) are actually far broader. Hudson’s ruling doesn’t just show how the Supreme Court could gut the health law -- it shows how the court could neuter the entire federal government.
Is it constitutional?
Chris Hayes of The Nation interviews Prof. Gillian Metzger, a constitutional law scholar at Columbia University, about the merits of challenges to the constitutionality of health care reform. According to Metzger, “the argument that [the mandate] is outside the commerce power is also pretty specious given the existing precedent.”
Steve Benen of the Washington Monthly accuses Judge Hudson of committing an “inexplicable error” in legal reasoning. There is a longstanding precedent that the federal government can regulate economic activity under the Commerce Clause. Hudson acknowledges this, but he maintains that this power doesn’t cover regulations of “economic inactivity” (i.e. not buying health insurance). As Benen notes, people who don’t buy insurance aren’t opting out of the market, they’re opting to let society absorb their future medical costs. Everyone who does buy insurance pays more because freeloaders coast without insurance and hope for the best.
Luckily for the Obama administration, the judge did not bar the implementation of health reform while the case works its way through the courts. The Supreme Court will ultimately hear this case. In the meantime, the federal government can continue building the infrastructure that will eventually support health care reform.
This is the third time a federal judge has ruled on the constitutionality of health care reforms and the first victory for the anti-reform contingent.
Paul Waldman reminds TAPPED readers why the mandate is critical to any health care reform based on private insurance. With a single-payer system, you don’t need a mandate because everyone is automatically covered. A mandate only comes into play when you have to force people to buy insurance.
Without a mandate, healthy risk-takers who don’t buy insurance will starve the system of premiums while they are well and bleed the system for benefits when they get sick. Meanwhile, people who already know they’re sick will sign up in droves, and the Affordable Care Act will force insurers to accept them. Without a mandate, the private health insurance industry would collapse and take health care reform down with it.
Is expanding Medicare the answer?
Matthew Rothschild of the Progressive argues that the legal headaches over the individual mandate illustrate why it would have been legally and procedurally easier to achieve universal health care by simply expanding Medicare to cover everyone.
At Truthout, Thom Hartmann argues universal health insurance in the form of “Medicare Part E” would spur economic growth and innovation because entrepreneurs could start businesses without worrying about how to provide health insurance for their employees.
Meanwhile, Brie Cadman reports at Change.Org, Sen. Tom Coburn (R-OK) is trying to defund health care reform by cutting funds for preventive health care. Coburn is urging his fellow Republicans to vote against a House-passed measure that would allocate $750 million for the 2011 Prevention and Public Health Fund. Cadman notes the irony of a medical doctor like Coburn, who also claims to be a fiscal conservative, trying to scuttle funds to control preventable diseases which would otherwise cost society billions of dollars a year.
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