John Oxendine has sent a letter to Secretary of Health and Human Services Kathleen Sebelius, notifying her that he would not be implementing the Federally mandated high-risk insurance pool.
So far, there are nineteen state attorneys general who have filed lawsuits challenging the constitutionality of the new law. Oxendine’s position is also that this is an unconstitutional expansion of the federal government. The main basis of the constitutional challenges will be related to the commerce clause – the ability of the federal government to regulate interstate commerce. Since health insurance is regulated within states, it is questionable whether the fed actually has the constitutional authority to do what they are doing. There of course will be further challenges questioning whether the government can force individuals to purchase something from a private company.
The odds of these challenges succeeding – well, probably pretty low based on past Supreme Court precedence. However, if we look instead at the constitution, it is difficult to see where the federal government actually gets the authority to do much of what they plan to do.