Washington Report: Appeals Court Strikes Down Health Insurance Requirement

By a 2-1 vote, the three-judge appellate panel agreed with the lower court on the unconstitutionality of the health-care reform law's individual mandate provision.

August 15, 2011

Week Ahead
The House and Senate are in Recess until September 7. Please take this time to introduce yourself to your members as you see them around the district or state. Contact Kelly Fink at kfink@nacsonline.com or (703) 518-4228 if you would like help facilitating these meetings.

Week in Review
On Friday, August 12, the U.S. Court of Appeals for the 11th Circuit in Atlanta ruled that the individual mandate - the provision of the health-care reform law that would require most Americans to buy health insurance - is unconstitutional. The holding came in a lawsuit filed by 26 states that was first heard by a federal judge in Florida. While the Florida judge struck down the entire health-care reform law, the 11th Circuit did not go as far. By a 2-1 vote, the three-judge appellate panel agreed with the lower court on the unconstitutionality of the individual mandate. But the appellate court concluded that the rest of the law, including the employer mandate, is severable from the unconstitutional portion, which means that those other provisions can stand.

The court struck down the individual mandate based on its finding that imposition of the mandate was not a valid exercise of Congress€™s powers to regulate interstate commerce or impose taxes. The panel was apparently persuaded by the states€™ argument that if Congress can require individuals to buy insurance, it could force people to do most anything to promote health, including buying vegetables or gym memberships.

The 11th Circuit€™s ruling is the second one from a federal appeals court on the constitutionality of the health-care reform law; the 6th Circuit upheld the individual mandate in a similar lawsuit earlier this summer. The 4th Circuit has also heard two cases regarding the health-care reform law, but has not yet issued its decision. The difference of opinion between the federal circuits makes it a near certainty that the Supreme Court will take up the matter in its new term that begins this fall. The 6th Circuit€™s decision has already been appealed by the plaintiff in that case, and the federal government will have 90 days to appeal the 11th Circuit€™s ruling or ask for review of the decision by all of the judges on the 11th Circuit. In any case, assuming the Supreme Court does accept the appeals, it is unlikely that there would be a decision from that Court before next summer.

Obama Administration Announces First-Ever Fuel Standard for Trucks
On Monday, August 8, the White House announced new fuel efficiency standards for medium and heavy trucks. These standards are aimed at curbing the greenhouse gas emissions trucks dispense daily.

The standards, drafted jointly by both the Environmental Protection Agency and the Department of Transportation, require semi trucks from model years 2014-2018 to achieve an approximate 20 percent reduction in fuel consumption and greenhouse gas emissions, saving roughly 4 gallons of fuel for every 100 miles traveled. Heavy-duty pickups, delivery trucks, vans and busses would save approximately 1 gallon per every 100 miles.

These standards are part of the larger Corporate Average Fuel Economy (CAFE) standards the administration laid out in July requiring automakers to reach an average of 55.4 miles per gallon for passenger cars by 2025.

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