Health Care Reform – Some States Raising Federalism Issue

The issue of health care reform is what is known as a third rail issue. Much like Medicare and Social Security, there are some hard decisions that have to be made. Politically, this is very difficult. As if the fighting between Democrats and Republicans isn’t enough, now the states are getting involved and raising the concept of Federalism.

What is federalism? It refers to our system of government. No, not the checks and balances between the executive, legislative and judicial branches. This version covers the relationship between the federal government and the states. The specific issue being discussed is who has authorities over which issues. For instance, some states have legalized medical marijuana while the federal government still considers it illegal in all forms. Who has the final say? Under President Bush, the feds asserted they did. Under President Obama, the feds have backed off.

So, how does this relate to health care reform and insurance? Well, the current proposed federal plan would require people to join the insurance plans created. If I decided to not buy health insurance, I would be penalized thousands of dollars. This would seem onerous upon people who are not in financial shape to make such a purchase, people who just buy cheap short term health insurance at the moment. Thirty two states are considering whether the federal government is overreaching by contemplating the passage of laws that relieve their citizens of any such duty to join. It is a classic face-off between states and the federal government.

Who will win? There really isn’t an indication at the moment since the election of Scott Brown has caused health care reform to come to a complete halt. Things should rev up again in late February, but nobody knows if mandatory participation clauses will be required. If they are, you can be states will start barking again.