Tuesday, January 15, 2019

Another Court Halts Administration's Final Rules on Contraception Mandate

Judge Wendy Bettlestone (E.D. Pa.) yesterday issued a preliminary injunction halting the government's final rules that provide sweeping exemptions to the contraception mandate under the Affordable Care Act.

Judge Bettlestone's ruling is the second in two days halting the rules. But unlike Sunday's ruling, which applied just to the plaintiffs, Judge Bettlestone's injunction applies nationwide. The ruling strikes yet another significant blow against the administration's efforts to eviscerate the contraception mandate and means that the government can't enforce its new rules unless and until it successfully appeals or wins a stay. The second ruling also makes it more likely that the issue will sooner-or-later end up at the Supreme Court.

The court held that the religious and moral exemptions violated the Administrative Procedure Act, for both procedural and substantive reasons. As to procedure, the court held that the government's earlier failure to apply APA procedures to the interim rules "infected" its adoption of the final rules. As to substance, the court ruled that the final rules "exceed the Agencies' authority under the ACA" and cannot be justified by the Religious Freedom Restoration Act.

The court recognized the controversies around nationwide injunctions, but wrote that a nationwide injunction was justified here for three reasons:

For one, anything short of a nation-wide injunction would likely fail to provide the States "complete relief." . . .

Second, it is far from clear how burdensome a nation-wide injunction would be on Defendants, given that when "agency regulations are unlawful, the ordinary result is that the rules are vacated--not that their application to the individual petitioners is proscribed." 

Third, one of the risks associated with a nation-wide injunction--namely, "foreclosing adjudication by a number of different courts"--is not necessarily present here, as the parallel litigation in the Ninth Circuit evidences. 

Fundamentally, given the harms to the States should the Final Rules be enforced--numerous citizens losing contraceptive coverage, resulting in "significant, direct and proprietary harm: to the States in the form of increased use of state-funded contraceptive services, as well as increased costs associated with unintended pregnancies--a nation-wide injunction is required to ensure complete relief to the States.

https://lawprofessors.typepad.com/conlaw/2019/01/another-court-halts-administrations-final-rules-on-contraception-mandate.html

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