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Regular updates about recent developments in labor, employment and public pension law in Oregon.

Monday, December 13, 2010

Health Care Reform Provision Invalidated

In an widely expected decision, Virginia Federal District Court Judge Henry Hudson found the minimum essential coverage provision of the Affordable Care Act (ACA) unconstitutional. According to the court, Congress exceeded its authority to regulate commerce and to protect public welfare. In order to get this conclusion, the court had to rely upon cases issued in the 1930's during the waning attacks on the New Deal. Notably, the Judge did not enjoin the implementation of this Act since this provision does not go into effect until 2013. In addition, and perhaps more importantly, the judge's opinion does not extend to a vast majority of the ACA, including the employer and Exchange mandates. Ultimately, it is expected that this case will be considered with several other cases that our wending their way through the courts of appeals. Ultimately, the U.S. Supreme Court will be asked to resolve what are likely to be conflicting Circuits. A cautionary note -- in the three District Court opinions that have been issued in these challenges, the judge's have resolved these issues based upon political appointment. (Judge Hudson is a George W. Bush appointee.) The continuing conservative majority in the U.S. Supreme Court does not bode well for this portion of the ACA.

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