HCW Benefits Blog

Contributor:
Laura Bibb, JD, Compliance Officer
Hill, Chesson & Woody 

Yesterday, in a lawsuit brought by the Virginia attorney general, a federal judge in Virginia ruled the reform law individual mandate was unconstitutional. U.S. District Judge Henry E. Hudson is the first federal judge to strike down the law. Other lawsuits in Virginia and Michigan have upheld the constitutionality, while a lawsuit on behalf of 20 state attorneys general is still pending in Florida. Arguments are scheduled for December 16, 2010 in the Florida lawsuit.   

The key issue in the lawsuit filed by Virginia Attorney General Kenneth Cuccinelli on behalf of the Commonwealth of Virginia is whether the government has authority under the Constitution to impose a requirement on individuals to obtain insurance — the “individual mandate” under reform law. The Justice Department in defending the lawsuit, relied on the Commerce Clause, and argued that the individual mandate is a proper exercise of the government’s authority under the Commerce Clause. The attorney general argued that while the Commerce Clause allows the government to regulate economic activity that affects interstate commerce, the decision to buy insurance is beyond the government’s power.

It is anticipated that this case will be ultimately decided by the U.S. Supreme Court.

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