OL FU wrote:danefan wrote:
Well, healthcare is certainly interstate commerce isn't it? Insurance companies, while licensed and regulated differently in each state, are multi-state operations. What happens to Cigna in NY effects Cigna policies in Illinois doesn't it?
Additionally, the penalty for not buying health insurance is baked into the tax code. Case law is clear that Congress has the power to tax as an incentive mechanism.
I have no idea whether it is a slam dunk or not but I don't blame the states for testing it. It does as far as I know introduce a new concept which is forced participation in a commercial activity and even the layperson can see that the penalty in the tax code is form over substance.
Its definitely an extetnion on current law and it could be considered new ground, but its based on recent Supreme Court history (Lopez in 1995, Morrison in 2000 and Raich 2005), including law that actually limits the Commerce power (Lopez).
And yes, its clear that the tax provisions is form over substance, but that doesn't necessarily change Congresses ability to do it. The power to tax and spend has been very broadly interpretted. The power to tax includes the power to do so to achieve regulatory goals as well as the power to provide tax incentives to people for doing something.
And I'm not in the camp saying its a frivilous lawsuit or even a waste of time. I just think they're going to lose. More power to them though if they want to sue.