HCW Benefits Blog

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

Yesterday, the Supreme Court announced it will hear arguments on the constitutionality of healthcare reform.  It is anticipated that arguments will occur in March 2012.  The timing is particularly interesting as it will allow the Court to make a decision in June 2012 (several months prior to the November 2012 election).

Of the court challenges across the country, the Supreme Court has decided to hear appeals from a ruling issued by the 11th Circuit in Atlanta finding the individual mandate unconstitutional.  While the 11th Circuit held that the individual mandate was outside Congressional authority to regulate commerce and to levy taxes, it found that the rest of the law could stand.

The justices will hear 5 ½ hours of arguments (instead of the usual one hour) from lawyers on the constitutionality of the individual mandate.

The Supreme Court will consider four issues:

1. Whether the individual mandate is constitutional (2 hours of argument allotted);
2. Whether the rest of the law can take effect if the individual mandate is held unconstitutional (90 minutes of argument allotted);
3. Whether the constitutionality challenge of the individual mandate is premature (i.e. can a tax can be challenged before it becomes effective); (1 hour of argument allotted); and
4. Whether the Medicaid expansion contained in healthcare reform is legal (1 hour of argument allotted).

By hearing arguments on whether the constitutionality challenges are premature, the Court now has an opening to delay making a decision.  Earlier this year, the federal appeals court in Richmond, Va., ruled that a challenge to the individual mandate penalty was premature since the penalty for failing to purchase insurance will not be paid before federal income tax returns are due in April 2015.

It appears that despite calls for them to step aside, Justice Clarence Thomas and Justice Elena Kagan will take part in the decision.  Justice Thomas’ wife, Virginia, has been involved in organizations opposing healthcare reform while Justice Kagan served as United States Solicitor General in the Obama administration while reform law was in the works.  Typically, when justices decide to disqualify themselves that decision is noted in the Court’s order to hear arguments.  There was no such notation in the Court’s order on Monday.

Stay tuned!