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Monday, December 13, 2010

Mandates! Health, Auto, Seat belt!!

Interesting developments!  A Judge in Virginia has ruled the Federal Mandate of Health Coverage unconstitutional. I find it bordering on hypocrisy that Virginia - a state that forces people to buy auto insurance or pay a fine - is the state that ruled a mandate to buy health insurance or face a fine unconstitutional.  On a side note, I am eager to see what challenges to auto insurance and seat belt laws can be brought from this.

It has been ruled that truly interstate insurance is a Federal Commerce matter.  Unless it is ruled that an insurance policy in Mississippi could not be honored by a hospital in Maryland - then the Federal government does, in fact, have jurisdiction.  So, would a Maryland hospital honor my Blue Cross Blue Shield of Mississippi health insurance coverage?

Another argument - or something to think about - is that the Health Coverage mandate is on all people who can afford it, while auto insurance mandate is only applicable to those who choose to own and operate a motor vehicle - whether they can afford the premiums or not.  Sure, owning an automobile may be a choice in New York City - but in Jackson, Mississippi, unless you live near a bus route, you must have at least access to a car.  There is no real 'public transportation' in most of the country.

While it may not be a federal mandate, auto insurance and seat belt laws are coerced by the federal government.  If they manage to get this part overturned, then the fed will just use it's old tricks of funding requirements to meet the 'requirement' by tying funding to state mandates.

Still, I think all insurance is just government sponsored protection racket.  You pay for 'protection' for years, then, when you need it the most, well, it doesn't cover THAT or there was this error in your application or whatever - and it doesn't help you at all.