December 23, 2009
Does the Reid bill unconstitutionally turn private health insurers into public utilities?
University of Chicago Law Professor Richard A Epstein has brilliantly argued that the Reid bill unconstitutionally turns private health insurers into public utilities. Luckily for those who haven't time to study his detailed argument, he's now summarized it nicely in the Wall Street Journal: As Harry Reid's 2,000 page health-care bill is being rammed through the Senate, most of the public debate has been focused on its expanded coverage, its now defunct public option, and its high taxes. Lost in the shuffle has been its intensely coercive requirements on health insurance issuers, especially in the individual and small group markets. Taken together, these restrictions are likely to drive them out of business and run afoul of the constitutional guarantee that all regulated industries have to a reasonable, risk-adjusted, rate of return on their invested capital.The perils of the Reid bill are made evident in a recent Congressional Budget Office (CBO) report that focused on the bill's...(Read Full Post)