Monday, February 4, 2019

District Court Dismisses Maryland's Obamacare Case Against the Feds for Lack of Standing

Judge Ellen Lipton Hollander (D. Md.) dismissed Maryland's case against the federal government for a declaration as to the constitutionality and enforceability of the Affordable Care Act and an injunction to get the government to enforce it. Judge Hollander concluded that the state lacked standing.

At the same time, the court recognized that Maryland might establish standing in the future--if the administration actually fails to enforce the ACA.

Maryland threw all of its standing-spaghetti at the wall, but still it wasn't enough to overcome what the court called the speculative nature of its harm. Maryland argued that the government's failure to enforce the ACA would harm its proprietary and financial interests (because the state set up systems, including an exchange, under the ACA, and because the state would be on the hook for uninsureds' care); quasi-sovereign interests (ensuring that the state and its residents get to participate in the ACA); and sovereign interests (in the creation and enforcement of its insurance and healthcare regulatory regime).

But the court said Maryland's harms were too speculative, even given the state's allegations in a second amended complaint that specifically detailed the administration's efforts to undermine the ACA. (Importantly, the court concluded that Maryland hadn't sufficiently pleaded that the administration would fail to enforce the ACA--not that nonenforcement would lead to the harms that Maryland cited.) In short:

Here, the State does not fear an imminent risk of enforcement. Rather, it fears nonenforcement, which it claims would result in significant costs and harm to the State. Whereas the executive agencies are responsible for enforcing the law and can therefore be expected to bring enforcement actions, they are categorically prohibited from flouting the law. To establish a plausible inference that an agency will imminently flout the law, particularly one affecting millions of people and billions of federal dollars, requires more persuasive allegations that defendants imminently intend not to enforce the ACA.

The President's profound disdain for the ACA cannot be seriously disputed. But, the State's allegations do not create a plausible inference of a substantial or certainly impending risk that the Trump Administration will cease enforcement of part or all of the ACA. Neither the President's zealous attempts to repeal the statute, nor his derisive comments about it, support an inference that he will fail to enforce the law.

https://lawprofessors.typepad.com/conlaw/2019/02/district-court-dismisses-marylands-obamacare-case-against-the-feds-for-lack-of-standing.html

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