The supreme struggle: 'Obamacare' and the new limits of federal regulation

Lemper, T. A. (2013). The supreme struggle: 'Obamacare' and the new limits of federal regulation. Business Horizons, 797-805.

Summary

This case reviews the 2012 Supreme Court decision to uphold the key provisions of The Affordable Care Act (ACA, also known as Obamacare). What is key to understand in this case is how the Supreme Court upheld Congress’ power to expand Medicaid and impose the individual mandate that required people to carry health insurance. Looking a little deeper, once part of the decision actually limited Congress’ power to compel states to take part in the expansion of Medicaid. In essence, the ACA allowed Congress to threaten to withhold federal Medicaid funds from states if they did not comply with the law. This Supreme Court struck down this part of the law. So, rather than a dramatic expansion of government powers, this underreported aspect of the decision ended up having far reaching implications as far as limiting Congress’ power regulate commerce.

Experience

I’ve followed the progress of the ACA since its inception. I had always wondered about the individual mandate and whether it was the right thing to enact as part of the law. I never really thought about Congress essentially threatening states to comply, or withhold federal funds that went towards Medicaid. This article forced me to re-examine my thoughts on how government works and how people took so much issue with the law when it was being debated. I still believe universal healthcare is desperately needed in this country. I just wish everyone could agree on that point and work to create a better system than we have now.

KEYWORDS: ACA, Obamacare, Supreme Court, commerce, individual mandate, Medicaid, laws, tax, Congress