Supreme Court to Hear ACA Case | Practical Law

Supreme Court to Hear ACA Case | Practical Law

On November 14, 2011, the US Supreme Court agreed to hear arguments on the constitutionality of the individual mandate provision under the Patient Protection and Affordable Care Act (PPACA), as amended by the Health Care and Education Reconciliation Act of 2010 (HCERA) (collectively, the Affordable Care Act (ACA)).

Supreme Court to Hear ACA Case

Practical Law Legal Update 6-512-5695 (Approx. 3 pages)

Supreme Court to Hear ACA Case

by PLC Employee Benefits & Executive Compensation
Published on 14 Nov 2011 • USA (National/Federal)
On November 14, 2011, the US Supreme Court agreed to hear arguments on the constitutionality of the individual mandate provision under the Patient Protection and Affordable Care Act (PPACA), as amended by the Health Care and Education Reconciliation Act of 2010 (HCERA) (collectively, the Affordable Care Act (ACA)).
On November 14, 2011, the US Supreme Court agreed to hear arguments on several aspects of the Patient Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act of 2010 (HCERA) (collectively, the Affordable Care Act (ACA)), including the constitutionality of the law's individual mandate provision. The Court granted certiorari to hear appeals from State of Florida v. US Department of Health & Human Services, in which the US Court of Appeals for the Eleventh Circuit held that the individual mandate is unconstitutional but severable from the rest of the ACA. The individual mandate requires most individuals to purchase and continuously maintain health insurance from private insurers or pay an annual monetary penalty beginning in 2014.
The issues to be argued are whether:
  • The individual mandate exceeds Congress' authority under Article I of the Constitution, including its power to regulate commerce among the states.
  • The individual mandate is severable from the rest of the ACA (that is, whether the rest of the ACA must be invalidated in its entirety if the Supreme Court concludes that the individual mandate is unconstitutional).
  • The courts have jurisdiction to hear the case under the Anti-Injunction Act, which bars pre-enforcement challenges to the assessment and collection of taxes.
  • The Act's expansion of the Medicaid program exceeds Congress' authority under the Constitution.
It is expected that the Court will hear oral arguments in March 2012 and issue its decision in June 2012.
The Court has also received petitions for certiorari from:
However, the Court's announcement did not address whether it would hear arguments in those cases.

Practical Implications

The Supreme Court's announcement to hear the ACA case identifies the important constitutional issues to be considered and sets the stage for a high-profile decision in 2012. For plan sponsors, administrators and their advisors, however, the announcement means that the day-to-day work of implementing the ACA's other provisions will take place, as it has to date, against a backdrop of uncertainty for the next several months. For more information on the ACA's requirements for health plans, see PLC's Affordable Care Act (ACA) Toolkit.