Sunday, August 23, 2009

Health-care reform is not unconstitutional



















An inquiry into health reform's constitutionality.
By Timothy Noah


But how can it be a tax if the money is turned over not to the government but to a private insurance company? William Treanor, dean of Fordham Law School and an expert on takings, repeated much of Amar's analysis to me (like Amar, he thinks a takings-based argument would never get anywhere), but instead of a tax he compared the individual mandate to the federal law mandating a minimum wage. Congress passes a law that says employers need to pay a certain minimum amount not to the government but to any person they hire. "The beneficiaries of that are private actors," Treanor explained. But it's allowed under the commerce clause. "Minimum wage law is constitutional." So, too, then, is the individual mandate.
While there is no mandate in the current draft of health-care reform, the principles still apply to a government subsidized optional health insurance - like Medicare.