Health Care Reform Moves To The Court

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By Douglas A. McIntyre Updated Published
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Health care reform, barely hours old, has begun its way into the legal system. It is a process that could take years. Attorneys general from 12 states are planning to challenge key portions of the bill. The new legislation will force all Americans to have health care. Virginia AG Kenneth Cuccinelli II, a founder of Fairfax, Va.-based firm Cuccinelli & Day, said that “just being alive is not interstate commerce,” reports the Richmond Times-Dispatch. “If it were, Congress could regulate every aspect of our lives.” Aside from Virginia, attorneys general from Florida, South Carolina, Alabama, Nebraska, Texas, Oklahoma, Pennsylvania, Washington, Utah, North Dakota and South Dakota say they will challenge the new health care bill in court. The states, they argue, can block the right of the federal government to mandate who must have insurance and what type they must have.


The states’ suits is only the beginning of a long path filled with resistance that health care reform must run before it goes into effect. The federal bureaucracy, particularly the Health and Human Services Department, will have to turn the law into rules and regulations that can be monitored by the government. It is too early to tell how each of the 32 million Americans without health insurance will be enrolled in the new system. Equally complex is the method whereby citizen’s who do not make enough money to cover their premiums will get supplemental payments.

It is now clear either which branch of the federal government will decide whether drug companies and insurance firms are charging rates that conform to the health care reform package. No penalties have been determined yet. Early word out of Washington says that the IRS, of all agencies, will enforce many of the regulations. According to The Washington Examiner, “health care reform, as currently envisioned by Democratic leaders, would be built on the foundation of an expanded and more intrusive IRS.” The tax collection agency will examine and decide, among other things, which people are in compliance with the new regulations. What data it may collect from health care providers is still unclear. It is also unclear whether the charter of the IRS will even allow it to perform these tasks, although the mandate of charter was expanded as part of the legislation. The agency may ask people to list the nature of their insurance on their 1040 tax returns.

Some portions of Americans do not pay their taxes. People with incomes below a certain level are not always required to file with the IRS on an annual basis at all. The use of the IRS as a health care monitoring agency is imperfect at best.
So, health care reform, which was created by one of the landmark pieces of legislation, now gets thrown into the crucible of the real world where lawsuits and enforcement often override the best of legislators’ intentions. And, as Social Security, civil rights, environmental reform, and other broad programs that have passed Congress and been signed into law show, the slip between the cup and the lip can be a big one.

Douglas A. McIntyre

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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