Tag: Obamacare

Obamacare Suffers Another Legal Blow

Yes, Speaker Pelosi, the constitutional concerns people have with the health care legislation you rammed through Congress despite overwhelmingly negative public opinion are serious. The Florida court’s ruling, denying the government’s motion to dismiss the challenge to the new health care law brought by 20 states and the National Federation of Independent Business, mirrors the one we saw in July in Virginia’s separate lawsuit. These have been the most thoroughly briefed and argued lawsuits, so these significant and lengthy opinions conclusively establish that the constitutional concerns raised by the individual mandate and other provisions are serious. Nobody can ever again suggest with a straight face that the legal claims are frivolous or mere political gamesmanship.

And that should come as no surprise to those who have been following the litigation because the new law is unprecedented – quite literally, without legal precedent – both in its regulatory scope and its expansion of federal authority. Never before have courts had to consider such a breathtaking assertion of raw federal power – not even during the height of the New Deal. “While the novel and unprecedented nature of the individual mandate does not automatically render it unconstitutional,” Judge Vinson observed, “there is perhaps a presumption that it is.”

This means at the very least that “the plaintiffs have most definitely stated a plausible claim with respect to this cause of action.”

Just so – and the deliberate consideration that these district courts are giving to these serious constitutional arguments (unlike the Michigan judge’s perfunctory treatment last week) indicates that the probability that the Supreme Court will ultimately strike down the individual mandate continues to increase.

GAO: HHS Imposed an “Unusual” Prior Restraint on Speech during ObamaCare Debate

During the debate over ObamaCare, the Centers for Medicare & Medicaid Services took issue with some of the things that some of the insurers participating in the Medicare Advantage program were telling their enrollees about the legislation.  The Government Accountability Office has just released a review of CMS’s conduct in that episode:

Although CMS’s actions generally conformed to its policies and procedures, the September 21, 2009, memorandum instructing all MA organizations to discontinue communications on pending legislation while CMS conducted its investigation was unusual. Officials from the MA organizations and CMS regional offices that we interviewed told us they were unaware of CMS ever directing all MA organizations to immediately stop an activity before CMS had determined whether that activity violated federal laws, regulations, or MA program guidance. When asked about this directive, officials from CMS’s central office stated that, given the degree of potential harm to beneficiaries, the action was appropriate for the circumstances….

HHS expressed concern that our description of the September 21, 2009, memorandum as “unusual” makes it appear as though their suspension of all MA organizations’ communications on pending health reform legislation was inappropriate. It noted that directing an MA organization to immediately stop an activity while the agency determined whether violations had occurred was infrequent but not unprecedented…. We believe that the example provided—wherein CMS put its data collection activities on hold until the agency resolved concerns with interpretation of its own regulations—is not comparable to CMS instructing all MA organizations to stop sending information about health reform proposals to beneficiaries while it investigated potential violations. Moreover, our characterization of CMS’s action as unusual is based on discussions with MA organizations and CMS staff. They told us that they could not recall a previous example where CMS told all plans to stop an activity after a potential violation was discovered and prior to the completion of an agency investigation.

For the record, CMS lacked (and still lacks) a Senate-confirmed administrator.  It’s worth asking whether this prior restraint placed on speech critical of the administration came from Secretary of Health and Human Services Kathleen Sebelius, who is making quite a name for herself as an enemy of free speech.

A Hidden Cost of ObamaCare

Today at the Cato Institute, Duke University Prof. Chris Conover presented his estimates of the economic losses that will be created by the taxes necessary to fund ObamaCare.  This chart is taken from his presentation:

The Excess Burden of ObamaCare

Here’s Conover’s full presentation (with comments by former Congressional Budget Office director Douglas Holtz-Eakin), as well as his Cato Policy Analysis, and his op-ed.

Hiding the Cost of Government Leads to Bigger Government

At the Daily Caller, Duke University Prof. Chris Conover writes:

There you are, about to sign the papers, when the car salesman offers to throw in a $1,000 options package. He knows those options will cost you a further $440 by reducing the performance of your new car’s engine, but he doesn’t tell you that.

Sounds sleazy, right? Congress does it every day.

Politicians love to rail against car dealers and mortgage lenders who surprise consumers with hidden costs. Yet Congress hides from voters a huge part of the cost of government: the hidden costs of taxes, which include lost income and jobs. Failing to account for these costs creates a bias in favor of bigger government and a less efficient tax code.

Read the rest of Conover’s oped here, and his Cato study here.

Cato Study: ObamaCare’s Hidden $550 Billion Cost

In a study released today by the Cato Institute, Duke University professor Chris Conover estimates how much ObamaCare and related provisions will reduce economic output:

The Congressional Budget Office has projected the 10-year, on-budget cost of [The Patient Protection and Affordable Care Act, a.k.a. ObamaCare] will be just over $1 trillion. This paper estimates PPACA will impose an additional, hidden cost of $157 billion to $494 billion in the form of reduced economic output. Related provisions (such as the so-called “doc fix”) could drive the economic losses to $550 billion, or more than half of the bill’s official cost estimates.
Conover will present his paper at a Cato policy forum at 10 a.m. today.  Click here to watch online.

The New York Times Undermines its Narrative

The New York Times has an odd story today on campaign finance on its front page. The story argues that organizations which do not have to identify their donors are sponsoring ads that criticize candidates for office. Complaints about secrecy notwithstanding, the third paragraph of the story discloses one of the major contributors to a group and reveals his putative interests in becoming involved. It also goes into great detail about the donor, his political associates, and even meetings his associates attended and what decisions were made therein. Later parts of the story recount the already disclosed names of supporters of Karl Rove’s efforts in this cycle. True, the story does not reveal everything the reporters believe should be disclosed about donors. But the groups and their donors are hardly secret given what is revealed in the story itself.

The story also cannot get its story straight. The Times’ reporters evidently wanted to fit what they have found into a standard, “special interest” template: the organization in question - the American Future Fund - as a front for energy interests. The story also says the group has sponsored ads on general themes like too much spending,  Obamacare, and another stimulus. But the reporters are determined to see “suggestions of an energy-related agenda,” their own reporting notwithstanding. This forcing of facts into a template comes along with a recognition that the politics of energy and ethanol have become more complicated making it difficult to say what interests are actually being advanced in the American Future Fund effort.

So the story discloses, while decrying secrecy, and both asserts and denies the domination of special interests. In the end, the story holds fast to a simple, conventional theme which is then undermined by its reporting. We should admire, I guess, that the Times’ reporters were willing to undermine their own narrative. But why not just embrace complexity? They are writing the first, not the final, draft of history.

The story also reports that donors desire anonymity because they wish to avoid taking sides in political disputes in public. The story does not say why they desire to avoid taking sides. Perhaps a quick call to the Koch family or George Soros might have provided an answer to that question.