The first round of Circuit Court hearings on the Obama health law took place earlier today in Richmond, Virginia’s Fourth Circuit. Two cases were heard by the three judge panel (Liberty University appealing a ruling for the government and the Justice Department appealing a ruling for the State of Virginia). It’s worth noting that while the 4th Circuit is composed of 14 judges – 7 appointed by Democratic presidents and 7 appointed by Republican presidents – the 3-judge panel for today’s oral arguments were all Democratic appointees (2 were appointed by President Obama, the major beneficiary of this law being upheld). That being the case, it is widely figured that it was over before it began.
After listening to both sides arguments (as I did), a neutral observer could certainly hear the difference in the panel’s tone and questions toward the two counsels. As some individuals in the audience have described, the audio sounds more like the judges were looking to the government-appellee to help write their opinions while looking to attack the plantiff-appellant at every turn.
While the basics of the case are quite clear – the Commerce Clause requires at least some form of activity, even if the act has an insignificant effect on interstate commerce – never discount lawyers’ ability to play verbal gymnastics with a relatively simple term (e.g., remember Bill Clinton’s famous statement questioning the definition of “is”?) Here’s one example from today:
During appellant’s argument (Liberty), the panel focused on the question of what qualifies as an activity. They used as an example someone receiving a gift (let’s say it’s marijuana) from their neighbor. The neighbor, now in possession of marijuana, is now subject to Congressional regulation under the Controlled Substances Act (CSA), which stems from the Commerce Clause power. The neighbor did nothing to seek out, buy or acquire this gift but they are still subject to regulation.
So how is this different than those who do not seek out health insurance? I mean, Congress has the right to regulate marijuana just as much as the health care market. If your neighbor gives you marijuana and you accept it, you become subject to the CSA. The act is one of accepting the gift. Same as if someone offered to pay for your health insurance. If you accepted the gift, you would now be subject to Congressional regulation as it pertains to your health insurance.
Clearly, the difference with the individual mandate is that no neighbor has come over to give you anything. You are just sitting in your house all alone when the government knocks on your door and mandates that you buy a product. It’s reasoning? Because you chose not to accept the gift from your neighbor (whether it be marijuana or health insurance), you made an economic decision and consequently participated in economic activity. Voila, you are now involved in commercial decisions even when you’re sitting at home not buying anything. Don’t tell me this passes the laugh test.
The second point worth noting from today’s argument pertains to the necessary and proper clause. The government asserts that since:
A) Congress has the authority under the Commerce Clause to regulate the insurance market by prohibiting lifetime limits or denying consumers with pre-existing conditions, and
B) To make these reforms work, everybody must participate in the system
then,
C) They can exercise powers that would otherwise not be constitutional – force people to buy a product from a private company.
To paraphrase the government’s lawyer, “the Necessary and Proper clause allows Congress to fill in the gaps of a comprehensive scheme.” Essentially, the Justice Department has yet another quite expansive claim – that the Necessary and Proper clause is an additional power unto itself that can expand the other powers. Yet this has never been the interpretation of it. It has always been seen as a provision ensuring laws with a constitutional basis can be implemented. It is a logistical provision – if you can raise an army, you can obviously raise and expend the money to pay that army.
The government’s approach goes way beyond modern precedent. If allowed, this would mean Congress could pass any unconstitutional law it wanted (e.g., individual mandate), so long as it was “necessary” to make a constitutional law workable (prohibition on pre-existing conditions)!
Moreover, this line of reasoning completely ignores the second half of the analysis – Is it proper? Well-established precedent says it’s not “proper” if it violates the founding principles, one of which is a government of limited and enumerated powers. This hits on the first part of our discussion – where is the limiting principle if Congress can regulate any “mental decision” or decision to not participate in an activity because it has economic implications? This would be granting Congress a de facto “police power,” something the Founders intentionally avoided doing.
No one is expecting the Fourth Circuit to rule against the government (and they’ll probably get a 3-0 ruling). But that doesn’t mean all Americans shouldn’t be outraged and terrified by the implications of the government’s position. We can only hope that the 11th Circuit, which will review Judge Vinson’s ruling striking down the entire law, (and ultimately the Supreme Court) provides a panel that has an interest in what our Founders intended and what has made this country so great.