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The Eleventh Circuit’s Affordable Care Act Decision Cannot Be Squared With The Constitution

Eleventh Circuit Judge Frank Hull

The key passage in today’s opinion striking down part of the Affordable Care Act appears on page 113, where the two judge majority explains how they will determine whether this law is constitutional:

In answering whether the federal government may exercise this asserted power to issue a mandate for Americans to purchase health insurance from private companies, we next examine a number of issues: (1) the unprecedented nature of the individual mandate; (2) whether Congress’s exercise of its commerce authority affords sufficient and meaningful limiting principles; and (3) the far-reaching implications for our federalist structure.

This is one way to evaluate whether a law is constitutional, but a better way is to ask whether the law can be squared with text of the Constitution. The Constitution provides that Congress may “regulate Commerce…among the several states,” and the very first Supreme Court decision interpreting this language made clear that this power is “plenary,” meaning that Congress may choose whatever means it wishes to regulate interstate marketplaces such as the national health care market, so long as it does not violate another textual provision of the Constitution.

A law requiring most Americans to either carry insurance or pay slightly more taxes clearly regulates the national market for health care. It determines how people will finance health care purchases. It lowers the cost of health insurance. And it protects that market from something known as an “adverse selection death spiral.” So that should have been the end of the case. The Court cites no provision of the Constitution limiting Congress’ authority to pass this law because no such provision exists. Read more

Health

Appeals Court Finds Individual Mandate Unconstitutional

Moments ago, in a 2-1 decision, the 11th Circuit Court of Appeals struck down the individual mandate in the Affordable Care Act, ruling that Congress cannot “mandate that individuals enter into contracts with private insurance companies for the purchase of an expensive product from the time they are born until the time they die.” The court kept the rest of the law enact. Some highlights from the decision:

– It is immaterial whether we perceive Congress to be regulating inactivity or a financial decision to forego insurance. Under any framing, the regulated conduct is defined by the absence of both commerce or even the “the production, distribution, and consumption of commodities”—the broad definition of economics in Raich… To connect this conduct to interstate commerce would require a “but-for causal chain” that the Supreme Court has rejected, as it would allow Congress to regulate anything.

In sum, the individual mandate is breathtaking in its expansive scope. It regulates those who have not entered the health care market at all. It regulates those who have entered the health care market, but have not entered the insurance market (and have no intention of doing so). It is over inclusive in when it regulates:it conflates those who presently consume health care with those who will not consume health care for many years into the future. The government’s position amounts to an argument that the mere fact of an individual’s existence substantially affects interstate commerce, and therefore Congress may regulate them at every point of their life.

The decision represents the first time a Democratic appointee — Judge Frank Hull — “voted to strike down the mandate“; Stanley Marcus, a judge nominated by President Ronald Reagan, wrote the dissent in the case. The case was brought by 26 states who challenged both the mandate and the constitutionality of the Affordable Care Act’s Medicaid expansion provision.

Previously, a federal appeals court in Cincinnati had upheld the mandate.

Update

Further analysis of the 300+ page opinion is forthcoming.

Update

White House responds: “Today’s ruling is one of many decisions on the Affordable Care Act that we will see in the weeks and months ahead. In the end, we are confident the Act will ultimately be upheld as constitutional.”

Health

Tenther Of Convenience: Romney’s ‘Federalism’ Argument Applies To Obamacare, But Not Marriage Equality

During last night’s GOP presidential debate in Ames, Iowa, Mitt Romney (R) distinguished his signature 2006 health care reform law from the Affordable Care Act by arguing that as governor, he offered a “state solution” to a “state problem,” while President Obama’s Affordable Care Act imposed a one-size-fits all system on all 50 states. “We put a plan together that was right for Massachusetts,” Romney explained, “the president took the power of the people and the states away from them.”

But minutes later, he used the exact opposite argument to oppose same-sex marriage. When asked if states should have the right to enact marriage equality legislation, Romney responded that they should not, insisting that “marriage should be decided on the federal level” through a constitutional amendment that would deny gay and lesbian people the right to wed or raise children:

ROMNEY: You might wonder, why is that? Why wouldn’t you just let each state make their own decision? And the reason is, people move from state to state of course in a society like ours. They have children as they go to different states, if one state recognizes the marriage and the other does not, what’s the right of that child? What kind of divorce potential proceeding would there be in a state that didn’t recognize the marriage in the first place?

Watch it:

Romney’s rationale for a single, national definition of marriage could also apply to America’s fractured health care system, in which individuals become uninsured if they lose their jobs, move to a state in which their insurer does not operate or one in which they would no longer qualify for health care assistance. As a result, health care costs are shifted throughout the system — from state to state, ultimately increasing federal spending. In 2006, Romney himself recognized this inefficiency and repeatedly suggested that the federal government could adopt Massachusetts’ plan as a model for reforming the national system.

And so Romney is a tenther of convenience. In trying to obscure the fact that the Affordable Care Act was largely modeled off of his health care proposal, Romney berates a president for forcing states to conform to a single national law and argues that they should be free to enact their own reforms. But should a state like New York or Vermont or Massachusetts pass a marriage law with which Romney disagrees, he demands that it conform to his views of marriage and proposes a constitutional amendment that would overturn “the power of the people and the states.”

NEWS FLASH

Obama Has Successfully Appointed Zero Court of Appeals Judges Under Age 45 | “Since 1981…Republicans have appointed 41 federal appellate judges under age 45 to the Democrats’ 10. Bush placed 13 judges in this group. Obama, so far, has zero.” This complete inability to confirm any young appeals judges — the sort of judges who could be eligible to serve on the Supreme Court more than a decade from now — stems in no small part from the Senate GOP’s unprecedented campaign of obstruction against Obama’s judicial nominees. It certainly hasn’t helped, however, that Obama’s nominees as a whole are older that his predecessors’. (HT: David Dayen)

Rick Perry Says Social Security And Medicare Are Unconstitutional

Texas Gov. Rick Perry (R) has, to say the least, a very odd understanding of the Constitution. He thinks Texas should be able to opt out of Social Security, and he believes that everything from federal public school programs to clean air laws are unconstitutional. Yet in an interview with the Daily Beast’s Andrew Romano, Perry makes his most outlandish claim to date — Social Security and Medicare are unconstitutional:

The Constitution says that “the Congress shall have Power To lay and collect Taxes… to provide for the… general Welfare of the United States.” But I noticed that when you quoted this section on page 116, you left “general welfare” out and put an ellipsis in its place. Progressives would say that “general welfare” includes things like Social Security or Medicare—that it gives the government the flexibility to tackle more than just the basic responsibilities laid out explicitly in our founding document. What does “general welfare” mean to you?

[PERRY:] I don’t think our founding fathers when they were putting the term “general welfare” in there were thinking about a federally operated program of pensions nor a federally operated program of health care. What they clearly said was that those were issues that the states need to address. Not the federal government. I stand very clear on that. From my perspective, the states could substantially better operate those programs if that’s what those states decided to do.

So in your view those things fall outside of general welfare. But what falls inside of it? What did the Founders mean by “general welfare”?

[PERRY:] I don’t know if I’m going to sit here and parse down to what the Founding Fathers thought general welfare meant.

But you just said what you thought they didn’t mean by general welfare. So isn’t it fair to ask what they did mean? It’s in the Constitution.

[Silence.]

Perry’s reading of the Constitution raises very serious questions about whether he understands the English language. The Constitution gives Congress the power to “to lay and collect taxes” and to “provide for the…general welfare of the United States.” No plausible interpretation of the words “general welfare” does not include programs that ensure that all Americans can live their entire lives secure in the understanding that retirement will not force them into poverty and untreated sickness.

Moreover, Perry’s belief that Social Security and Medicare must cease to exist not only puts him well to the right of his fellow Republicans in Congress — who recently voted to gradually phase out Medicare — it also puts him at the rightward fringe of the GOP presidential field. Not even Michele Bachmann has gone on record claiming that America’s two most cherished programs for seniors violate the Constitution, although she did invite a Fox News analyst who shares Perry’s beliefs to lecture her fellow lawmakers on what the Constitution requires.

When House Budget Chair Paul Ryan (R-WI) released the GOP’s plan to slowly eliminate Medicare, it was the most conservative budget proposal anyone had seriously considered in generations. Perry’s agenda, however, makes Paul Ryan look like Ted Kennedy.

Rand Paul Rushes To Romney’s Defense: ‘All Of Us Are Corporations’

ThinkProgress filed this report from the Republican presidential debate in Ames, Iowa.

Mitt Romney & Rand Paul Think These Are People

During a campaign stop at the Iowa State Fair yesterday, former Massachusetts Gov. Mitt Romney (R) vociferously defended tax breaks for corporations by declaring that “corporations are people.” Though Romney’s assertion was widely mocked – corporations cannot vote, cannot be sent to prison, and clearly lack all human anatomy – the former Massachusetts governor has not backed down in the face of withering criticism.

Now, another GOPer says Romney was actually spot on: Sen. Rand Paul (R-KY).

ThinkProgress asked Paul about Romney’s comments prior to the Republican presidential debate in Ames. Paul rushed to the former governor’s defense, arguing that Romney was correct in his equivalency between man and mega-company. “I think we’re all corporations,” Paul said. “All of us are corporations.” The Tea Party senator later went on to blur the lines further between corporations and people by declaring, “They’re us. They’re the middle class”:

KEYES: What did you make of Mitt Romney’s statement today that “corporations are people”?

PAUL: Corporations are collections of people. I think we’re all corporations. To say we’re going to punish corporations like they’re someone else. All of us are corporations.

KEYES: Do you think that was basically in line with what he was saying?

PAUL: You think about, if you own a retirement fund, you have a 401k, everybody who has a 401k has parts of corporations, so in a sense we are.

KEYES: I think people might argue that corporations can’t be sent to jail.

PAUL: I think those arguments can be made, but I think the fact that a lot of times people want to vilify corporations, saying they’re someone else, that they’re these other rich people. They’re us. They’re the middle class. We all own parts of corporations.

Watch it:

It’s unsurprising that Paul would side with corporations. In the past, Paul has expressed his affection for the U.S. Chamber of Commerce, was quick to defend BP during its high-profile act of corporate irresponsibility, and during the 2010 campaign, complained that disabilities laws are unfair to the business owner.

A quick glance at Paul’s campaign fundraising finds major contributions from corporations like Koch Industries, AT&T, and Exxon Mobil. Still, as one of the original Tea Party senators, Paul’s defense of corporations flies in the face of the populist movement he purports to represent.

Corporate lobbyists have also played a major role in Romney’s presidential campaign. Indeed, a Huffington Post investigation found that thus far in 2011, Romney has received more campaign cash from lobbyists than the rest of the Republican field combined. As Romney barnstorms the country with his message that “corporations are people,” Paul’s busy watching out for Romney’s flank and making sure people understand that people “are corporations” as well.

Justiceline: August 12, 2011

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