This column presents facts regarding the United States Constitution, the Declaration of Independence, the Wisconsin State Constitution, and various other documents in reference to modern topics. Mark hopes to encourage interest in those works so that others can consider whether our government is practicing within its constitutional limits. In the last category, he may indicate his opinion. Mark is a resident of New Berlin. Readers are encouraged to visit the following sites for more information on the United States Constitution and Thomas Jefferson's views on politics and government.
According to Foxnews.com; March 17, 2012
Ready for another round of stimulus? This time, it's courtesy of the insurance industry -- though Uncle Sam is forcing the payouts.
Millions of Americans stand to receive insurance company rebates by the end of the summer, as a result of a new requirement in the federal health care overhaul that strictly governs how insurers spend their cash.
The insurance industry, along with a slew of state officials, have been fighting the policy. Based on rules that were issued at the end of last year, Washington will require insurers to spend between 80 and 85 percent of premium dollars on medical care. Insurance companies that violate the rule will be required to effectively refund their customers.
Here's how the new system works: Starting in 2011, insurers were supposed to abide by the new rules. They require insurers in the individual and small group market to keep administrative costs to 20 percent, and to just 15 percent in the large group market. If they don't, they're supposed to send out a round of rebates by Aug. 1 of this year. That rebate could take the form of a check or credit card payment, or a reduction in premiums -- the rebates will either be distributed to individuals or employers depending on the plan.
President Obama and customers vs. The Constitution and stock holders
The US Constitution, Amendment 10
The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.
We the People:
In what faction are you? If the majority faction receives a rebate check, they probably won’t object to this provision. And that is the problem. Our government is not a pure democracy in which majority rules. Our system is a constitutional republic, which limits federal government interference and protects the rights of individuals (including those in minorities). But the people must expect and demand its application. In this case, the minority faction is the stockholders of health insurance companies. Where in a free society may a government dictate how a private business allocates its operating funds? It is certainly not from the US Constitution. Would you leave your IRA funds where the government forced the company to issue such rebates?