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The hurrah for Healthcare – will it last! | Deal insight

Obamacare’s promise to provide Healthcare to all is in jeopardy though many states are in various stages of implementing it through public providers o f Medicare plans like Wellpoint. The order has been challenged in court and the court seemingly (Bloomberg) provided 3 days for arguments , the longest to a single case in years.

President Barack Obama's signature on the heal...

President Barack Obama's signature on the health insurance reform bill at the White House, March 23, 2010. The President signed the bill with 22 different pens. (Photo credit: Wikipedia)

The critical clause providing everyone Healthcare irrespective of pre existing conditions will win Obama a lot of fans but has been challenged by insurers in Supreme Court and the Supreme Court is scheduled to hear arguments later this month from march 26-28 on legality of the various provisions in the Patient Protection and Affordable Care Act. A GOP blog( outlines the arguments against Obamacare/Romneycare as under:

1. Exceeding the  Commerce clause in forcing all Americans to have some form of health coverage in three years when there is a proviso of penalties

2. Exceeding / Abusing the Spending clause in coercing states to make the bill by withholding Medicaid budgets /reimbursements (entitlements)

3. Lack of Ripeness in challenging Obamacare before any victim has been identified ( to wait until injury occurs in 2015)

4. Severability or the attempt to deign the entire act as null and void once any provision is considered illegal


Obviously parts of the Act may survive adverse judgements, but there is likely a Domino effect nullifying multple provisions once a particular provision is struck ( Bloomberg finds the opinion rewarding enough in its Healthcare at the High Court series, summary treatment but delight ful)

The state of Florida and the Natl Federation of Independent businesses are the litigators. The Obamacare Act also has a clause allocating all spending decisions to a committee of Experts the IPAB which will ration Obamacare to reach all within budgeted ceilings.



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This entry was posted on March 19, 2012 by in Amitonomics, Healthcare, Obamanomics, US.


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