The federal government, in response to a lawsuit in Michigan in which the state challenges the legality of a federal mandate to buy health insurance, has responded with several reasons why it believes the government is within their rights to force all Americans to buy medical insurance in the private market. https://higginscompanies.com/health-insurance/all-bcbs-of-az-plans/
The first reason given is that, by not purchasing health insurance, those uninsured affect interstate commerce by saddling the costs involved on health insurance companies and to the public. https://higginscompanies.com/health-insurance/group-health-insurance/
If the commerce clause argument doesn’t work the federal government also argues that they have the right to tax, and that the penalty for not having health insurance is a fee. They argue that it is their right to apply tax credits and penalties, which is all the health insurance mandate is.
Lastly, if the first two arguments don’t stick the federal government argues that Michigan doesn’t have the right to sue because no actual harm or injury has been caused because the health insurance mandate does not go into affect for another four years.
So let the games begin. Now that the government has shown it’s hand in how they plan on defending the new mandated health insurance law, the AG’s of many states can respond accordingly.
Michael Higgins
602.405.8769
An Arizona health insurance broker.