Litigation

Health care reform ruled unconstitutional in part

By John Walch

A federal district court judge in Virginia has ruled that one of the centerpieces of the health care reform law enacted earlier this year is unconstitutional.  Judge Henry Hudson, in Virginia v. Sebelius, found illegal the part of the law mandating that every U.S. citizen maintain a minimum level of health insurance.  Although courts have ruled on standing issues in other cases challenging health care reform, this is the first decision addressing the substance of the law.

Several other cases are pending, including one brought by the attorney generals of some 20 states  challenging certain financial underpinnings of the law. 

The federal government will appeal the decision and it is nearly certain that, absent a legislative change to the challenged portions of the law (making the appeal moot), the Supreme Court will eventually decide the issue. 

The Judge severed the provisions he found to be unconstitutional and left in effect the remainder of the law, portions of which will become effective on January 1 for calendar year plans.  Employers should therefore continue to prepare for the law's various effective dates.

Full post as published by Northwest Business Litigation Blog on December 13, 2010 (boomark / email).