March 23rd, 2010

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Constituionality of insurance mandate

Complaints filed by Attorneys General.

1. I think the 10th Amendment complaint is without merit. This is a classic case of interstate commerce. If the feds can preempt all banking regulation in the states, they can preempt insurance regulation. And nothing prevents the feds from creating "unfunded mandates."

2. The direct capitation tax is more interesting. But if that provision is rendered unconstitutional, the insurance companies will not thank the Attorneys General.