So not to work at cross-purposes, public policy at the federal level of a federal republic should not be at odds with federalism. Put another way, public policy enacted into law that weakens the constitutional archetecture of a governmental system undercuts is neither prudent nor wise. Heath insurance reform provides us with a case in point.
In 2009, the U.S. Senate’s majority leader, Harry Reid, proposed a government-run “public” health-care insurance option with an “escape hatch.” “A state could refuse to participate in the public insurance plan by adopting a law to opt out.”[1] While this proposal would barr a State refusing the public option from participating in the coops that are also a part of Reid’s proposal, the basic “opt out” arrangement is in line with federalism and, moreover, with the inherent heterogenious or diverse nature of an empire spanning across and continent and beyond. In contrast, Olympia Snowe’s preference for “a fallback, safety-net plan” that would trigger the public option in States where insurance companies fail to offer affordable plans is antithetical to federalism because the States would have no choice in whether the plan was triggered.
The approach most in line with federalism would be for the health-plans to be designed in the State governments, with the U.S. Government focused on matters that the States cannot (not will not) do, such as presenting a united foreign policy to the world. If there is a lowest common denominator for health-care in the US as per the fundamental principles of the Union, a basic program passed by the U.S. Government would be consistent with also having State plans. Next closest, the U.S. Government would supply money for health-care, which the State governments would decide how to spend. Even less in line with federalism would be the design of the programs being done by Congress and the WH, with separate opt-outs for the public and coop insurance plans. Reid’s proposal was less in line with federalism, and finally, as least in line with it, was Snowe’s preference.
1. Robert Pear and David M. Herszenhorn, "Public Option Push in Senate Comes with Escape Hatch," The New York Times, October 26, 2009.
