Tuesday, November 30, 2010

Virginia Judge Upholds Healthcare Legislation

The Hill is reporting that a Virginia judge has upheld the new healthcare reform law:
A federal judge in Virginia on Tuesday rejected a legal challenge to the healthcare reform law, the second time the law's mandate that people buy insurance has been ruled constitutional.


"Far from ‘inactivity,’ by choosing to forgo insurance, Plaintiffs are making an economic decision to try to pay for health care services later, out of pocket, rather than now, through the purchase of insurance. As Congress found, the total incidence of these economic decisions has a substantial impact on the national market for health care by collectively shifting billions of dollars on to other market participants and driving up the prices of insurance policies."
I appreciate the fact that there's now a judicial precedent that collective cost shifting is wrong. I'm sure my children will also once they realize the national debt is almost $14 trillion. Perhaps we should all take a page from the auto bailout to forestall the moral hazard of cost shifting. In particular, instead of passing that debt along to our (or someone else's) children, why don't we give the bond holders a "haircut".

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