Court Allows Virginia Suit Challenging Health Care Law to Proceed

On Monday a federal court denied the Obama Administration’s motion to dismiss a Virginia lawsuit challenging the Constitutionality of the new health care law, thus permitting the case to go forward. The suit, filed by Republican Attorney Gen. Ken Cuccinelli II, alleges that the government has overstepped its bounds by mandating that individuals purchase health insurance or pay a fine, as required by the Patient Protection and Affordable Care Act’s (“Affordable Care Act”). The suit claims that choosing not to purchase health insurance is not an economic activity that can be regulated by Congress through its interstate commerce powers. Moreover, the suit asserts, the mandate conflicts with Virginia’s recently-adopted Virginia Health Care Freedom Act which makes it unlawful to require that a state resident obtain health insurance, or impose a penalty or fee on that individual for failure to do so.

In its motion to dismiss, the administration argued, among other things, that the state lacked standing to sue, and that it had no chance of ultimately prevailing on its constitutional challenge. In his opinion, (pdf) Judge Henry Hudson denied this procedural effort to dispense with the case, claiming that there was a lack of case law on this very complex issue to enable him to grant the administration’s request. “While this case raises a host of complex constitutional issues, all seem to distill to the single question of whether or not Congress has the power to regulate – and tax – a citizen's decision not to participate in interstate commerce. Neither the U.S. Supreme Court nor any circuit court of appeals has squarely addressed this issue.” The judge concluded that “resolution of the controlling issues in this case must await a hearing on the merits.” As for the ability to bring the lawsuit, the judge ruled that the state, through its Attorney General, had satisfied the standing requirements under the facts of the case.

Because the bar is set low for ruling on a motion to dismiss, the judge’s decision is not all that significant. In essence, the judge simply ruled that Virginia’s claims are sufficient to proceed to resolution, and should not be dismissed as wholly out-of-hand. As the judge explained:

the congressional enactment under review . . . literally forges new ground and extends Commerce Clause powers beyond its current high watermark. Counsel for both sides have thoroughly mined relevant case law and offered well reasoned analyses. The result, however, has been insightful and illuminating, but short of definitive. While this Court’s decision may set the initial judicial course of this case, it will certainly not be the final word.

Arguments on the full merits of the case are scheduled for October. As such, the Virginia health care challenge will be the first in the nation to be considered. Twenty other states are also challenging the Affordable Care Act’s constitutionality in a joined suit filed in a Florida court. In addition to the constitutionality argument, the Florida case alleges that the measure’s requirement that states expand their Medicaid programs violates state sovereignty by unlawfully commandeering state resources.

This entry was written by Ilyse Schuman.

Photo credit:  dra_schwartz