Supreme Court to Consider Constitutionality of Obamacare
SD Sen. Thune
On November 14, 2011, the U.S. Supreme Court announced their intention to evaluate whether Congress overstepped its authority to require all Americans to purchase health insurance under a provision of Obamacare known as the individual mandate. Under the legislation, all citizens who choose not to purchase health insurance will be subject to an annual tax of either $750 or two percent of their taxable income by 2014.
This highly controversial mandate prompted 26 states, including South Dakota, to file a lawsuit arguing that the law’s individual mandate constitutes a federal overreach. States have also argued that the expansion of Medicaid places an unconstitutional unfunded mandate on states that they simply cannot afford. In South Dakota alone, it is estimated that this mandated expansion will cost state taxpayers nearly $100 million between 2009 and 2019, which will put tremendous budgetary pressure on existing programs. It is expected that the Supreme Court will reach a ruling by July of 2012.
The recent decision by the Supreme Court to evaluate Congress’ authority to mandate the purchase of health insurance will be an important indicator of the sustainability of the controversial health care reform law. As more of the key pieces of the Obama administration’s signature law begin to crumble, such as the Community Living Assistance Services and Supports Act (better known as the CLASS Act), the demise of the individual mandate may be more than the current law can sustain. Senator Thune is hopeful the U.S. Supreme Court will strike down this legislation and Congress will do what they should have done all along—work together on bipartisan reforms that reduce costs and preserve high-quality care.
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