Friday, November 15, 2013


Quote of the Day

Obama has summoned the CEOs of several insurance companies to the White House for a meeting [the day after proposing a solution], presumably on the Obamacare "fix." Apparently, checking with the insurance companies before enlisting them in a scheme with major practical and legal consequences didn't occur to the White House.

Gabriel Malor


The latest I have read raises the issue of insurance companies entering into policy contracts with insureds, when those contracts are illegal under ACA. The president's "fix' only withholds enforcement of compliance with the minimum coverage rules -- it does not change the law w/r/t those rules. And, therefore, the policies that would be issued by the companies would be noncompliant and therefore illegal. ...and illegal contacts are not enforceable. ...and any company or insured who relied on someone's statement of nonenforcement is a fool.

Or that's what I think some are saying. IANAL, so I easily could be wrong.

A contract against public policy (eg. I won't sell my house to a Jewish or black person) is unenforceable and public policy is not merely an executive order. An illegal contract usually is not enforceable but not because the contract should not have been available in the first place under the law, but because the conduct being contracted for is illegal and malum per se not merely malum prohibitum. That said, Obama is merely making a promise not to enforce the law, which goes directly against the Oath of Office and Article II, Section 3, Clause 5. Even if reduced to an Executive Order, those can be reversed on the President's whim and by the next President. So the insurance companies would indeed be fools to trust non enforcement by our peerless leader.
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