US District Court Judge Roger Vinson just handed the Democrats a victory with his ruling against the Affordable Care Act (ACA). So did Judge Henry Hudson of the Eastern District of Virginia with his ruling on the individual mandate earlier.
Stay with me folks. I haven’t jumped to the red side of the force.
The Democrats in the House should immediately draft a bill repealing the clause requiring every American to purchase health insurance. You are right, Mr. Speaker, the 111th Congress did indeed overstep its authority. Mea culpa, mea culpa. Here, let’s fix this thing.
The Republicans would have to vote for it in light of the recent rulings in their favor. It is their central argument against the ACA and the Democrats are willing to concede they are right. Then it goes to the Senate where the Democratically-controlled body would pass it and off to the president’s desk where he would sign it.
Without the individual mandate clause, insurance companies could not afford to be in the insurance business. All the other parts of the Act would remain intact, including covering pre-existing conditions, no life-time cap, etc, etc. Shareholders would bolt from the stock and the industry would collapse. That would leave the door open for a Medicare-for-All, single-payer system based on health rather than sickness, driving down the cost of care as there would be no third-party profit motive behind medical care. Hospitals would still get paid as would doctors and drug companies.
The only industry harmed would be the for-profit insurance industry. What value do they really have now anyway, other than being in the middle collecting and distributing payments? Besides, the Federal Government could hire them back as contractors to process the billings at about 1/10 their current staff levels. That is one thing they are really good at and it would be a shame to let that go to waste.
The more elite, well-funded insurance companies can set up shop to provide expensive health care in private clinics to an exclusive client base who don’t want to mingle with the common folk. Heavily taxed and regulated, of course.
The logic of group coverage is the larger the group, the cheaper the premiums. The Republicans use this argument to justify selling insurance across state lines, another point the Democrats could concede. What bigger group can you assemble in The United States than all 300 million citizens? And we already have a universal way of billing for and collecting premiums called the IRS.
But this won’t happen because the health insurance companies need the mandate more than the Democrats do. For the Republican state’s attorneys general who are bringing lawsuits against the ACA based on the Constitutional commerce clause, the argument is short-sighted. But they’ve already committed to the path. If they win in the US Supreme Court, the insurance industry loses and collapses. They will win every battle, but lose the war.
The health insurance industry will not let that happen.
If the Democrats thought a bit faster, they could put every Republican — especially the Tea Party-backed ones — in a very uncomfortable position of having to vote against the Individual Mandate Clause repeal.
That alone would make an exciting November 2012!