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Posts Tagged ‘insurance’

State Attorneys General Agree To File Constitutional Challenge To Obamacare Immediately

Monday, March 22nd, 2010

President Obama, making calls here on Sunday to wavering House Democrats, is about to face a multi-state lawsuit alleging that his signature initiative, Obamacare, is unconstitutional

In late breaking news this evening after the historic passage of Obamacare through the House of Representatives by Democrats over bipartisan opposition, many state attorneys general held a conference call in which it was decided that they would file a multi-state suit alleging the newly-passed Obamacare is unconstitutional immediately after President Barack Obama signs the act, which is expected on early next week.  Texas Attorney General Greg Abbott broke the news on his Facebook page:

Just got off the AG conference call. We agreed that a multi-state lawsuit would send the strongest signal. We plan to file the moment Obama signs the bill. I anticipate him signing it tomorrow. Check back for an update at that time. I will post a link to the lawsuit when it is filed. It will lay out why the bill is unconstitutional and tramples individual and states rights.

While the entire roster of claims regarding unconstitutionality is obviously unknown at this time, it appears that a central focus of the initial immediate filing (which will undoubtedly be amended several times) will be whether the individual mandate, which requires American citizens to purchase health insurance from private insurers, is a constitutional exercise of the federal government’s proscribed powers. Virginia Attorney General Ken Cuccinelli announced late Sunday night after the conference call that Virginia planned on joining the multi-state litigation against Obamacare:

Virginia will file suit against the federal government charging that the health-care reform legislation is unconstitutional, Virginia Attorney General Ken Cuccinelli’s office confirmed last night.

Cuccinelli is expected to argue that the bill, with its mandate that requires nearly every American to be insured by 2014, violates the commerce clause of the U.S. Constitution. The attorney general’s office will file suit once President Barack Obama signs the bill into law, which could occur early this week.

“At no time in our history has the government mandated its citizens buy a good or service,” Cuccinelli said in a statement last night.

Finally, Florida’s Attorney General Bill McCollum announced Florida would join the suit:

ORLANDO, FL — Moments after Congress voted to approve President Obama’s health care legislation, Florida’s Attorney General announced he will file a lawsuit to declare the bill unconstitutional.

Bill McCollum will join Attorneys General from South Carolina, Nebraska, Texas, Utah, Pennsylvania, Washington, North Dakota and South Dakota to file a lawsuit against the federal government.

“The health care reform legislation passed by the U. S. House of Representatives this evening clearly violates the U.S. Constitution and infringes on each state’s sovereignty,” McCollum said in a statement distributed late Sunday night.

“If the President signs this bill into law, we will file a lawsuit to protect the rights and the interests of American citizens.”

As noted above, many other states are also expected to join the multi-state litigation set to be filed this week as soon as President Obama signs the bill, originally passed on Christmas Eve 2009 by the Senate and today passed by the House. This matter will present the largest challenge in decades to the present jurisprudence on the Commerce Clause, which presently allows essentially unlimited federal government regulation of any economic activity. One key factor for the Court is state activism to oppose federal encroachment in any given area, and a total of 37 states may pass specific legislation to battle the Obamacare provision requiring all individuals to purchase health insurance:

BOISE, Idaho — Idaho took the lead in a growing, nationwide fight against health care overhaul Wednesday when its governor became the first to sign a measure requiring the state attorney general to sue the federal government if residents are forced to buy health insurance.

Similar legislation is pending in 37 other states.

This litigation will open a new chapter in the Obamacare battle in federal district court, where political fireworks are sure to ensue and a momentous decision is set to be made by the trial court and then, in all likelihood, the Supreme Court of the United States. President Obama may yet regret the recent public fights between him and Chief Justice John Roberts and Justice Samuel Alito (who Obama filibustered as a Senator), as the existing acrimony between the branches cannot be helpful for the President’s chances of avoiding a damaging Supreme Court ruling that his signature initiative is unconstitutional.

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Bailout Deal Reached – Taxpayer Protections, Insurance Provision Added, ACORN Pork Removed

Sunday, September 28th, 2008

Verbal Deal Reached on Bailout

Verbal Deal Reached on Bailout

After midnight on Capitol Hill negotiators emerged to announce that a verbal bailout deal had been reached between Congressional Democrats and House GOP negotiator and whip Roy Blunt. Since the meeting at the White House on Thursday night, representatives of the House GOP and congressional Democrats have been locked in negotiations to create a bailout package that both parties could support.

John McCain returned to his Arlington, VA campaign headquarters after about a twelve hour stay in Mississippi to debate Barack Obama on Friday night. By suspending his campaign and returning to DC on Thursday, McCain provided the House GOP an opening to curb some of the more undesirable aspects of the bailout package negotiated between Treasury Secretary Paulson and congressional Democrats. Blunt laid out the most pressing objections on Saturday afternoon, and it appears the Democrats have caved on several of the demands.

Most importantly, Democratic giveaways to leftist public interest groups, such as ACORN and La Raza, were removed from the bill. The Dodd-Paulson bill, which was heralded as a completed bipartisan deal on Thursday afternoon (notwithstanding the lack of House GOP approval), contained a provision which provided for 20% of any profits realized on the sale of any asset purchased via the bailout to be funneled to the Housing Trust Fund and the Capital Magnet Fund. These two Funds would then hand out grants to service organizations, such as ACORN Housing, an offshoot of ACORN. Amazingly, the provision did not require an overall profit on the 700 Billion dollar investment – just profit on any individual transaction.

Instead of funnelling such potential profits to service organizations, the deal reached tonight will dedicate any and all profits directly to deficit reduction – a priority applauded by moderate and centrist Americans. Another provision inserted by Democrats which favored unionization was also watered down. Further, another provision to ensure that the federal government receives a piece of the selling banks, in the form of a stock warrant, is part of the new deal.

The other major change brought by the House GOP was the insertion of a program that would encourage banks to hold onto their mortgage backed securities by providing federal default insurance for a fee. It is hoped that this insurance provision will reduce the dollar amount of taxpayer funded loans that are required to purchase assets.

Certain bipartisan alternations to the original Paulson proposal were included in tonight’s deal as well, such as limits on executive compensation and significant oversight over the Treasury Department. The entity to be created as now envisioned by the bailout bill in some respects is similar to the Mortgage and Financial Institutions (MFI) Trust proposed by McCain about 10 days ago. Democrats were mainly responsible for the inclusion of increased assistance to defaulting homeowners, which a major change to bankruptcy law to allow reduction of mortgage balances in bankruptcy did not make the final package.

Of course, the heart of the bailout deal remains the authorization of borrowing by the Treasury Department to purchase “toxic” mortgage backed securities. The deal tonight allows for $350 Billion in authority immediately, with the potential for 350 Billion more unless a joint resolution of Congress is signed by the President disallowing the additional funding. It is hoped that the bailout package will calm markets, starting with Asia’s opening on Sunday night, and free up some liquidity in the U.S. Economy to allow normal business operations to continue.

With the bailout package now in its final form and all sides in agreement that something must be passed in the next few days to avoid a market selloff, the focus now turns to how McCain and Obama will present their position and responsibility for the package. Both candidates are well aware of the deep unpopularity of the bailout bill, with the public opposing the bailout 50%-24%.

Politically, the effect of the bailout deal is up in the air. John McCain will certainly attempt to claim credit for the improved bailout package that resulted from the inclusion of the House GOP in the negotiations. It remains to be seen whether McCain will assert that Congress followed suggestion of the MFI Trust in part with the new package. Obama will probably continue to assert that McCain’s presence was only counterproductive. After the Sunday talk shows and many surrogate appearances tomorrow, a picture of the political battleground on the bailout package should become clear.

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