Benefits and Compensation

Supreme Court to Rule on Whether Health Reform Stands or Falls

Fast on the heels of the latest pertinent appeals court ruling, the U.S. Supreme Court definitively announced on Nov. 14 it will decide the question of whether Congress exceeded its powers to regulate commerce when it required people to buy health insurance as part of health reform (or in the converse, whether the individual mandate is allowed under the U.S. Constitution). It said it would hold hearings on the issue in February and March 2012; it estimated it would rule on it in June 2012.

The High Court will cover other arguments, particularly the question of “severability,” that is, the issue of whether the rest of the Patient Protection and Affordable Care Act (PPACA) must fall in the event that the individual mandate is stricken.

The court will also address a question brought by the U.S. Dept. of Health and Human Services (HHS) in defense of the Act: “Whether the suit brought by respondents to challenge the minimum coverage provision of the Patient Protection and Affordable Care Act is barred by the Anti-Injunction Act.” (Which restricts lawsuits to prevent the federal government from collecting a tax. HHS has argued parties challenging the reform law should be barred by this provision until levies are actually assessed in 2014.) The petitioners include litigants in these cases: National Federation of Independent Business v. Sebelius; and Florida v. HHS.

Here’s an interesting chart from The New York Times of previous court rulings that brought us where we are.

White House Communications Director Dan Pfeiffer predicted the administration would prevail in the court and the law would stand:

Earlier this year, the Obama Administration asked the Supreme Court to consider legal challenges to the health reform law and we are pleased the Court has agreed to hear this case. … We know the Affordable Care Act is constitutional and are confident the Supreme Court will agree.

Karen Harned, executive director for small business at the National Federation of Independent Business (NFIB), said:

This law not only failed the self-employed and small-business employees in practice, it has failed them in principle, forcing upon them an unprecedented mandate that infringes upon the individual rights that, truly, all Americans hold so dear. … After months of uncertainty and frustration, small-business owners are finally within the reach of some clarity on how this law will ultimately impact their lives and their livelihoods. We are confident in the strength of our case and hopeful that we will ultimately prevail. Our nation’s job-creators depend on a decision being reached before the harmful effects of this new law become irreversible.”

It is unlikely that the employer mandates and provisions – such as fines for large employers that provide no coverage, or unaffordable coverage – will be reviewed by the Supreme Court.

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