U.S. Appeals Court Strikes Down Health Care Reform

Last Friday the U.S. appeals court in Atlanta ruled that the Affordable Care Act (ACA)’s mandate requiring every American citizen to purchase health insurance beginning in 2014 was unconstitutional.  The three-judge panel ruled 2 to 1 on the decision.
 
The Affordable Care Act of 2010, also known as federal health care reform, purports to expand health insurance to cover most Americans.  Given the high cost of paying for universal medical care, the ACA included provisions that every citizen be an active participant in the insurance ‘risk pool’ by enrolling with medical insurance and paying premiums.   This is called the ‘individual mandate’.
 
Is This the Final Court Decision for Health Care Reform?

No. The Atlanta appellate court’s striking down of the individual mandate directly conflicts with a decision handed down this past June from the U.S. Appeals Court in Cincinnati.  The Cincinnati Court had ruled in favor of the new law.  These two contradictory rulings make it almost certain that the U.S. Supreme Court will eventually step in and provide a final decision on the new law.
 
Two federal appellate courts in Virginia and the District of Columbia have yet to rule on the health law.  The Fourth Circuit Court of Appeals in Richmond, Virginia, is expected to rule soon.  The District of Columbia appellate court is scheduled to hear arguments in September.

What Happens Next?
 
With the conclusion of these two final appellate proceedings, the case could land at the Supreme Court as early as its current 2011-2012 term (which ends in June 2012).  Or, the court could choose to wait until the 2012-2013 term, which would put a final resolution after the November 2012 presidential election.  We will continue to keep you posted on the judicial developments impacting the federal health care law.