The Constitutionality Of The Affordable Care Act

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Every year consumers spend billions of dollars on insurance coverage in the United
States. According to Webster’s Dictionary, “insurance is a practice or arrangement by which a company or government agency provides a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a premium.” The statutory power to regulate the business of insurance comes from a 1945 ruling by the U.S. Supreme Court that prompts
Congress to enact the McCarron-Ferguson Law giving individual states the power to regulate the business of insurance. But the lack of uniformity, loop holes, blind spots and deficiencies within the state-based agencies have become a growing problem. For years Congress has been studying
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According to its director, Michael T. McRaith and Dick
Allender, supervisor of the property and casualty consumer services division, the D of I, is an administrative agency that lacks the legal authority to monitor government and private entities within the insurance industry while doing business in our state. The Illinois D of I, lacks the legal authority to impose sanctions or fines should their investigations reveal unscrupulous or unfair business practices. According to McRaith and Allender, legislation has repeatedly failed its consumers and the lack of power, regulation and consumer advocacy poses a serious risk to consumers in the insurance arena. Albert B. Crenshaw explains, “Americans who move from place to place learn sometimes to their delight, other times to their horror -that insurance is a quirky affair, regulated differently by each state.” Since the enactment of the McCarran-Ferguson Act of 1945, it is believed that state-based regulation is the most desirable system. According to William J. Warfel, the McCarran–Ferguson Act, 15 U.S.C. §§ 1011-1015, also known as Public Law 15,[1], “is a United States federal law that exempts the business of insurance from most federal regulation. The McCarran-Ferguson Act specifically provides that the regulation of the business of insurance by the state
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