March 10, 2018
Partisan gridlock in Congress is often the rule, but there are the occasional and notable exceptions. In the recent spending bill, lawmakers successfully repealed the Independent Payment Advisory Board (IPAB)—one of the most extreme examples of consolidated, unchecked government power in American history. As the only organization to have challenged IPAB in court, we’re celebrating the elimination of what columnist George Will called “the most anti-constitutional law ever written.”
Enacted eight years ago as part of the Affordable Care Act, IPAB was created as a cost-saving mechanism for the Medicare program for the nation’s elderly, but its authority was far broader. The unelected Board wielded unprecedented power to write healthcare rules that would automatically become law without a vote of Congress, signature of the president, notice to the public, or review by the courts.
Some fiscal conservatives are now lamenting the fact that, by repealing IPAB, Congress has removed important checks on uncontrolled Medicare spending. This is an issue that should not be ignored. True, the Medicare program is in desperate need of modernization and financial overhaul, and IPAB would have been a tool to control those costs. But the costs to our Constitution would have been far greater. Those doubting the dangers that IPAB posed should consider the following:
IPAB’s authority was not limited to Medicare. IPAB had much broader powers to make law governing both government and private healthcare—whatever the Board considered “related to the Medicare program.” IPAB’s toolbox was vast: It could enact price controls and even levy taxes. And those decisions would have been free of any meaningful checks or balances.
IPAB’s power was consolidated in one individual. Some viewed Congress’s repeal of IPAB as premature—after all, neither President Obama nor Trump had appointed any members to the Board, and it had not yet taken any actions. But lack of membership was only more cause for concern. So long as IPAB remained unstaffed, the Secretary of Health and Human Services alone wielded the Board’s vast powers.
IPAB’s decisions were not subject to judicial review. IPAB’s so-called “recommendations” would have automatically become law, without review by Congress or the courts. In other words, the ACA left unaccountable bureaucrats free to make decisions that could affect public and private healthcare for millions of Americans.
IPAB had the power to ration care. Many mistakenly believed that IPAB was prohibited from rationing healthcare. But what constitutes rationing? The ACA never defined “rationing care”—instead, it left the Board to define rationing however it wished, and it prohibited patients and doctors from turning to the courts for protection if the Board stopped them from receiving or delivering care. In other words, IPAB put bureaucrats in charge of deciding what type and how much medical care people should receive. That system would have deprived patients of access to needed care—increasing centralized decision making at the expense of individual healthcare decisions.
The U.S. Constitution gives the lawmaking power to Congress alone because legislators are responsible to their constituents and checked by the other branches of government. No agency can be rendered exempt from democratic processes and the rule of law. That is why Congress should be lauded for repealing the unchecked and unprecedented consolidation of bureaucratic power.
Liberty in the News
Even shaky cases get “rubber stamp” convictions in traffic court. In his latest report, Goldwater Institute National Investigative Report Mark Flatten uncovers another example of the city court system gone wrong, and how it harms individuals who expect fair treatment under the law.
Massachusetts is one of only six states that prohibits employers—but not unions or other groups—from contributing to political parties, committees, or candidates. This week, the practice came under scrutiny in the state’s Supreme Judicial Court, and the Goldwater Institute represented the plaintiffs, arguing that all groups ought to have the same ability to participate in the political process—regardless which side of the bargaining table they sit on.
The Goldwater Institute welcomed Matthew Simon as its new Director of Education Policy this week. In his new role, Matthew will be responsible for researching and developing policies to promote education freedom and liberty. He started his career in education as a high school science teacher in rural Arkansas with Teach for America and then worked for the Arkansas Region of Teach for America coaching and developing teachers in the program.