Federal Court Upholds Constitutionality of Health Reform Law - December 8, 2010

The U.S. District Court for the Western District of Virginia on Nov. 30 dismissed a lawsuit, Liberty University, Inc. v. Geithner, which challenged the constitutionality of the Affordable Care Act (“ACA”). Liberty University and several individual plaintiffs challenged the ACA on the grounds that the individual insurance mandate was unconstitutional for regulating “inactivity” – that is, the choice not to purchase insurance. The Court rejected this argument. It noted that nearly all individuals receive health care services at some point, and that Congress has the power to regulate such health care activity, including the purchase of health insurance to cover services, as part of interstate commerce. In addition, the Court rejected the plaintiffs’ argument that the ACA violated their religious freedoms because the individual mandate could cause individuals to purchase insurance that might fund abortions. The Court noted that there were several religious provisions in the ACA and the ACA requires state exchanges to include at least one insurance plan that does not cover non-excepted abortion services. Several other legal challenges to the ACA remain active, including a challenge by the State of Virginia for which a decision is expected by the end of the year. On Dec. 16, oral hearings also will be held on a challenge by the State of Florida.