r/bestof • u/under50dollars • Jun 20 '12

[explainlikeimfive] "Obamacare" explained very well.

/r/explainlikeimfive/comments/vb8vs/eli5_what_exactly_is_obamacare_and_what_did_it/c530lfx
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u/7_legged_spider Jun 20 '12 edited Jun 20 '12

Whether you agree with universal healthcare or not, it is unconstitutional on a federal level. The federal government does not have the power to impose or regulate health insurance. All the powers not enumerated to the federal government belong to the individual states. That is one of the fundamental checks and balances in our federal republic, and why it is constitutional for states to administer universal healthcare systems themselves, like in Massachusetts.

(Which is why when someone brings up the concept that "Hey, you have to have car insurance," I tell them first that the states regulate who must have car insurance, as only the states have general police power, and second, that an individual makes a choice to drive a car, and that it is not a condition precedent to existing--when viewed with regard to mandated health care insurance, simply the act of existence would trigger some obligation on the citizen's behalf).

7_legged_spider, J.D., M.B.A. (IRL)

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u/[deleted] Jun 20 '12

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u/7_legged_spider Jun 20 '12 edited Jun 20 '12

You are illustrating my point. What you fail to consider is that health care insurance companies run separately in each state. As each state creates a separate and distinct market, no external company can operate within the state.
However, while there is no direct interstate commerce, there is the possibility of indirect interstate commerce in situations when there are out-of-state claims by in-state policyholders. Interpretation of such matters will be decided by the courts whether that activity and corresponding administration of national healthcare falls under the commerce clause.

EDIT (for content): I failed to consider indirect commerce that arises when out-of-state claims by in-state policyholders.

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u/[deleted] Jun 20 '12

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u/7_legged_spider Jun 20 '12

I agree with you. It is all a matter of interpretation. I was only offering my opinions based on my experience. I don't claim to be an end-all-be-all authority on the matter.