BREAKING: Supreme Court Upholds Individual Mandate As A Tax

[Samantha]

323. Opt out from the the Medicaid portion or the entire Act?

It has always been true that a state could opt out from the entire Act if it created legislation similar enough to the Act that the same consumer protections were in place. If they did, they could get funding for their individual program. Approximately 9 states have begun doing this (or are seriously studying it), and I am envious of those people who live in those states. The programs being implemented, such as in Vermont, are the same as single payer.

But states can also decline the Medicaid portion of this Act. What the Federal Government cannot do is cut off the current aid it is giving to those states which do this, but should a state refuse to accept the funds for the Medicaid portion of the Federal law, they will not receive the increased funding provided under that law. At its inception, the Federal Government will fund Medicaid at the state level I believe at 100 percent for 3 years; then it starts to gradually drop down to like 95, then 90 percentages (approximately). I am not sure quite where it levels off. It seems to me this is so generous that any state that declined it would probably be one with a Republican Governor who did so for political reasons, not economic ones.

Regarding all the discussion on this thread about labeling the penalty a tax, the Dems always knew it was the equivalent of a tax but thought for PR reasons it would be better to call it a penalty. As time progressed in the negotiations of enacting the Federal legislation, the Dems did whittle away at the amount of the penalty (and/or tax) clauses, stripping the IRS of the ability to for instance attach a person's wages for non-payment or taking assets. They did so (whittled away) because the Dems from the beginning were always against a mandate -- it was the Republicans who insisted on it. The penalty is waived for those making small salaries, and kicks it at a certain level of I think about $40,000 yearly. At that point, if one does not buy coverage, he or she will be penalized/taxed about $100. No pay - no problem.

Attorneys defending the Act, said even if it were found to be not Constitutional to enforce the mandate because those judging read the Commerce differently, the fact of the matter was that that penalty was indeed a tax, just not labeled as such in the wording of the legislation. And the Federal Government is empowered to levy taxes. Roberts agreed with that argument.

Those judges in fact reading the Commerce Clause differently bought the plaintiffs' assertions that people not now covered were not participating in commerce, and thus they could not be fined.

See -- pretty simple right?

Sam