August 12, 2011
Breaking News: 11th Circuit Strikes PPACA Individual Mandate, Creates Circuit Split
According to BNA Reports:
In a 2-1 decision, the U.S. Court of Appeals for the Eleventh Circuit Aug. 12 struck down a key provision of the federal health reform law, but stopped short of declaring the entire statute unconstitutional (Florida v. HHS, 11th Cir., No. 11-11021, 8/12/11).
The court held in a 304 page ruling that Congress exceeded its powers under the U.S. Constitution's commerce clause when it enacted the individual mandate, a provision scheduled to take effect in 2014 that would require most Americans to buy health insurance or pay a penalty.
In an opinion by Chief Judge Joel F. Dubina, joined by Judge Frank M. Hull, the court said Congress could do many things under the commerce clause, but one thing it could not do was “mandate that individuals enter into contracts with private insurance companies for the purchase of an expensive product from the time they are born until the time they die.”
“The federal government's assertion of power, under the Commerce Clause, to issue an economic mandate for Americans to purchase insurance from a private company for the entire duration of their lives is unprecedented, lacks cognizable limits, and imperils our federalist structure,” the court wrote.
The Eleventh Circuit, however, declared the mandate severable from the remainder of the Patient Protection and Affordable Care Act (PPACA). In invalidating the entire act, the court said, the U.S. District Court for the Northern District of Florida placed too much weight on the fact that the act lacks a severability clause. The proper test, it said, was whether Congress would have enacted the statute in the absence of the individual mandate provision.
The decision sets up a circuit split, as the U.S. Court of Appeals for the Sixth Circuit July 7 held the individual mandate constitutional. In another split decision, the Sixth Circuit said in Thomas More Law Center v. Obama that the individual mandate “falls within Congress's power to regulate activities that substantially affect interstate commerce.” Thomas More Law Center filed a petition for review with the Supreme Court July 26. The circuit split ups the odds that the U.S. Supreme Court will grant review in at least one of the cases.
August 12, 2011 | Permalink
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