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Hobby Lobby and the Shellacking, Part II

During the Supreme Court oral argument in Sebelius v. Hobby Lobby Stores, Inc., there was an important colloquy between Justice Elena Kagan and Hobby Lobby’s counsel, Paul Clement. The issue was whether the government has a “compelling interest” in enforcing ObamaCare against employers whose undisputed fundamental religious beliefs would be violated. Clement argued that the existence of the grandfather clause in the law shows there is no such interest:   

MR. CLEMENT: … I think the grandfather provisions of this statute really are devastating for the government’s argument that it has a compelling interest [to mandate insurance that violates Hobby Lobby’s religious beliefs]. When the government pursues compelling interest, it demands immediate compliance. … I can’t imagine Congress passing Title VII [of the Civil Rights Act of 1964] and saying, “Stop discriminating on the basis of race, unless of course you have a pre-existing policy that discriminates on the basis of race, and then you can keep it as long as you’d like.”

JUSTICE KAGAN: … you know, initially Title VII did not apply to any employers with fewer than 25 employees. And then gradually, Congress brought the number down because Congress realized that there were going to be transition issues and that some time was needed to make sure that the compelling interest, you know, should be applied uniformly across all employers.

MR. CLEMENT: … [It’s consistent with a compelling interest] to say we’re going to focus on the people who actually employ the most people and therefore can engage in the most discrimination. It’s quite a different matter, and I don’t think anybody would think that Congress would pass a Title VII that said, “Hey, as long as you have a pre-existing discriminatory policy, you’re allowed to keep it.” [Transcript at pp. 30-31]

ObamaCare was enacted on the president’s oft-repeated assurances that everyone who liked their existing insurance plans could keep them–period! Everyone was grandfathered! It was only the freeloaders going to emergency rooms without insurance who–so the argument went–would be mandated into the system. And once those people were in the system, costs for everyone would go down (by $2,500!), the deficit would be cut (by a hundred billion a year!), and people would love the law (once they found out what was in it).

All this turned out to be untrue. The administration issued a grandfather regulation so narrow that virtually everyone’s existing insurance in the individual market got cancelled, which got the administration into huge political trouble. So the president issued a new exemption (via a press conference), and then unilaterally delayed the employer mandate lest the same thing happen later this year in a market 20 times as large. But the existence of the grandfather clause–as well as the exemptions issued left and right–puts the administration in legal jeopardy in the Court, because it cuts into the heart of the “compelling interest” argument. Justice rarely gets more poetic.

Political justice may take a little longer, but it may be coming. There has likely never been a law passed with more fraudulent arguments, using more fraudulent procedures, rushed through more quickly on a strictly partisan vote, while opinion polls (and the Massachusetts special election) showed the public and voters firmly opposed, both back then and now.

Now that everyone has not only learned what is in the law, but has seen how it has been implemented–with a website that didn’t work, exemptions and extensions handed out without the consent of Congress, supporters or key voting groups given immense leeway while opponents are taken all the way to the Supreme Court, and as Jonathan Tobin notes, a nonstop continuing chaos–there may be a new horror movie coming in November to a polling place near you. Call it The Shellacking, Part II.


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