HCW Benefits Blog

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

Florida federal Judge Roger Vinson (presiding over the lawsuit filed by 26 state attorneys general) ruled that healthcare reform law was unconstitutional on the basis that Congress overstepped its authority to regulate commerce.  Judge Vinson ruled that the law will remain in effect until all appeals are finished.  If the appellate courts agree with him, Judge Vinson stated that the entire law should be invalidated.  Judge Vinson was appointed to the bench by President Reagan in 1983. 

The states involved in this lawsuit are: Alabama, Alaska, Arizona, Colorado, Florida, Georgia, Indiana, Idaho, Iowa, Kansas, Louisiana, Maine, Michigan, Mississippi, Nebraska, Nevada, North Dakota, Ohio, Pennsylvania, South Carolina, South Dakota, Texas, Utah, Washington, Wisconsin and Wyoming.

What’s at issue?
In a nutshell, the argument in this case is whether requiring Americans to purchase health insurance is within Congress’ authority to regulate interstate commerce (its Commerce Clause authority).

What’s next?
This case may be appealed to the U.S. Court of Appeals in Atlanta.  The U.S. Court of Appeals in Richmond is scheduled to hear 2 Virginia court cases challenging the constitutionality of reform law (one successful and one unsuccessful).  Ultimately, the U.S. Supreme Court will be faced with the decision of whether to consider these cases.

What’s it mean?
Reform law still remains in effect until further action by a higher court (likely the U.S. Supreme Court) or Congress to repeal the law (which is unlikely).  The victory in this lawsuit for opponents of healthcare reform may spark other similar court challenges and at a minimum will add to the debate on reform.

For more guidance on how healthcare reform will affect employers, feel free to visit HCW's Healthcare Reform Employer's Guide.