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On Key Legal Issue, Even Conservatives Say Health Care's On Safe Ground

First Posted: 12/13/10 05:58 PM ET Updated: 05/25/11 07:20 PM ET

Henry Hudson

WASHINGTON -- Among health-care experts and reform advocates, the immediate reaction to a federal court ruling declaring a key portion of Obama's health care law illegal was one of bitterness, but not dread.

The decision, as handed down by U.S. District Judge Henry E. Hudson, determined that the individual mandate requiring individuals to buy coverage was unconstitutional. Politically, it was a setback -- breathing life into a repeal-and-replace movement that had appeared momentarily dormant -- but the broader health-care overhaul seems to remain on safe ground.

For starters, experts say, the court cordoned off the individual mandate from the rest of the bill, rather than demanding that administration of the entire reform package be halted.

"One important thing to note is that the judge does not enter an injunction" said Tim Jost, a professor of law at the Washington and Lee University Law School, on a conference call hosted by the White House-allied Center for American Progress. "He enters a declaratory judgment with respect to this provision only, and he decides that this provision is severable from every other provision that is not directly dependent on this and makes specific reference to [the individual mandate]. There are no other provisions in the Affordable Care Act that do so. So this decision is solely a decision as to the minimum-coverage requirement."

As Jost suggested, the somewhat-esoteric notion of severability could prove a crucial element in the debate over the health-care law's long-term viability. When being crafted in Congress, lawmakers were widely reported to have -- somewhat inexplicably -- forgotten to add a severability clause to the bill's legislative language. Such clauses are added for the purpose of ensuring that if a portion of a bill is struck down in the courts, it simply "severs" that portion from the legislation rather than invalidating the entire law.

Since health care lacked this language, Republicans hoped that by ruling the individual mandate unconstitutional, the courts could essentially nullify the entire legislation. Hudson, however, declined to issue such a broad ruling. And in interviews with The Huffington Post, even conservatives acknowledged that severability could be applied by the courts, post facto, to a piece of legislation.

"I'm of the opinion that this is really up to the courts. They have shown on multiple occasions that when they look at a constitutional flaw in a bill, particularly a large bill, that they attempt to severe it," said Ben Domenech, who, as a research fellow for The Heartland Institute, a nonprofit organization that promotes "free-market" solutions to health care reform, has written on the subject. "As a legal matter, I think the courts are clearly within their historical backgrounds ... they have clearly taken the opinion that they can strike these things out whether there is a severability clause or not."

Domenech's checkered past as a conservative columnist has not, and would not, make him a political ally for health care's defenders. And, indeed, other officials at Heartland argued that severability was a bit more difficult to apply to the health care bill.

"I think in the end, the court will find it severable, and when I say the court, I mean the U.S. Supreme Court," said Maureen Martin, The Heartland Institute's senior fellow for legal affairs. "But [HHS] Secretary Kathleen Sebelius did not take that position in a press release. She argued in a court that this whole thing is a linchpin. The entire Obamacare act, in her view, she said it is one whole piece of cloth. And the logical extension of that argument is if the individual mandate goes down, the whole bill goes down."

Martin's argument may have more to do with the law's logistical framework than its legal underpinnings. If the individual mandate is ultimately deemed unconstitutional, it wouldn't necessarily mean that the whole bill would be struck down. But it could doom health care's implementation -- dependent, as the bill is, on greatly expanding the base of coverage.

But on this and the legal front, people who know the legislation best say she's wrong.

"There are other ways to replace the individual mandate," said Ron Pollack, the Founding Executive Director of Families USA, a liberal consumer-advocacy group that focuses on health care. "I think the individual mandate is probably the most effective way to make sure that everybody has coverage, but there are other ways to try and make sure that everyone gets coverage, ultimately. So I do not suggest that this is a decision that people should be happy with, but one should not blow out of proportion what this means. The court made clear that it is not invalidating the entire statute, and the key elements, particularly where the costs are, are going to stand."

Ezra Klein, who has covered health-care policy extensively for the Washington Post, framed, Monday's ruling, counter-intuitively, as a victory for the reform law's defenders. The individual mandate, after all, is one of the legislation's most unpopular features. And there are numerous policy replacements that could be added in its absence, the most promising of which may be a Back Premiums penalty, which allows people who forego insurance to pay the costs of the policy should they suddenly need coverage.

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WASHINGTON -- Among health-care experts and reform advocates, the immediate reaction to a federal court ruling declaring a key portion of Obama's health care law illegal was one of bitterness, but not...
WASHINGTON -- Among health-care experts and reform advocates, the immediate reaction to a federal court ruling declaring a key portion of Obama's health care law illegal was one of bitterness, but not...
 
 
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06:34 PM on 12/14/2010
I'm gonna go out on a limb and say that I'm not sure leaving out a severability clause was an oversight. It seems pretty "activist" to me to assume they meant to include one when the text of the law does not indicate that.

Yes, mistakes happen (I used to draft legislation), but I think there are good reasons to believe a severability clause was deliberately excluded.
05:05 PM on 12/14/2010
This decision will get the case into the appellate courts. And, in all probability they will gut the mandate. After that the bill will colapse from its own costs.

What a great day.
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rakrobn
06:52 PM on 12/14/2010
Yeah, kind of like how Medicare was deemed unconstitutional by the courts - oh wait, never mind. Try again, teabagger.
11:00 AM on 12/31/2010
Medicare...what a great program. Looking forward to 2017 when the baby boomer retirements bust this pathetic program.
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03:49 PM on 12/14/2010
So everyone is cool with Obama supporters getting exemptions from this bill?
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rakrobn
06:51 PM on 12/14/2010
Yup. Bye, bye gasbag.
09:21 AM on 12/20/2010
yes
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Cacey
Ignore rudeness, honor discussion
02:50 PM on 12/14/2010
There's been a lot of discussion and comparison with the laws requiring auto insurance and health insurance with no real results.  As I see it the requirement for auto insurance involves the damage you do to others and the property of others.  If you owned the car outright and purchased it with the sole purpose of driving it off a cliff there is no reason why you would have to have insurance.  In the case of health insurance, if you get sick and don't have insurance the county hospital is still required to take care of you regardless of your having insurance or not.  So if you have no insurance you are freeloading off of the tax payer. 
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04:36 PM on 12/14/2010
The problem with the car insurance defense is that if you don't drive a car, you do not have to have insurance. It's not like the govt. says you have to drive a car therefore you have to buy the insurance, like they do with this law.
They can't even say that a person could get sick and be a burden on taxpayers. That person could choose not to go to a doctor. It's never going to stop people from using ER's anyway. This law takes away a person's right to choose and sets a precedent that the govt. can force a person to buy a product if they deem it's beneficial to the taxpayer.
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Cacey
Ignore rudeness, honor discussion
06:42 PM on 12/14/2010
But there are already things the government can force you to do that will cost you money.  For example, if you live in a house deemed unsafe you can be foreced to clean it up or move.  If you are not taking care of your kids' medical problems the government can force you to do so.
01:03 AM on 01/02/2011
For small bills those freeloaders get sent to collections. For larger bills they get sued. If the clinic or hospital can still not collect, other customers get to front the bill in the form of higher medical costs.
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TeraWatt60
Cogito Ergo Sum
02:30 PM on 12/14/2010
Judge Johnson has a vested interest in the political consulting firm that ran the campaigns of many Repug/Bagger candidates claiming that the law was unconstitutional, in fact, he made 100k from it. I think we know the sum total of this "grafty" Cons reasoning ...
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Raw Ron
Fox news: we distort, you comply
02:12 PM on 12/14/2010
If anyone thinks that a a constitution professor would be stupid enough to spend all that political capital on a bill that would be unconstitutional. This is just the regressive's trying to embarrass the president.
01:42 PM on 12/14/2010
What I don't get is, if everyone is required to have insurance what is to keep them from charging an arm and a leg for insruance? Or worse, hospitals charging more since they know almost everytime they will be pid? If there was a law that everyone had to buy a Big Mac for lunch every day what would stop McDonalds from charing $10 each? Right now if they charged that much nobody would buy it. If an insurance company charges much more than another, everyone would select the other, now there is little to keep them from just upping the cost.
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08:06 PM on 12/14/2010
Great point. Good job by you.
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LeftCoastEng
Obsessed with failed trade
12:43 PM on 12/14/2010
States require all citizens who want to drive to buy something they may or may not want - auto insurance. So it a fed vs. state thing that riles all these folks up? Or just another excuse to oppose everything the other side tries to do even if it is something good for the country.

Also, just call the fine a tax and the constitutional question is solved. Hardly breathtaking as suggested in a previous comment.
01:00 PM on 12/14/2010
not all people have to drive, or need to drive. Its like being forced to buy flood insurance when you live on a mountain. the only oppoisiton is to bigger and more intrusive gov.
01:14 PM on 12/14/2010
meaning some people don’t need it, or don’t need to pay to have maternity coverage/child care if you’re a single parent, or can’t have children. and having to pay for ppl who don’t care for their bodies. Referencing to the mt. its like having to pay for every1 floods insurance even ppl who live on a mountain, and ppl who are to dumb to move from a 5 yr flood zone.
01:19 PM on 12/14/2010
But everybody needs health care.
01:36 PM on 12/14/2010
Couple things with that. First nobody is forcing you to drive, or own a car. My wife and I own one car, only pay insurance on that car. She takes the Metro to work, so we don't need 2 car payments and insurance on 2 cars, so really only I pay insurance on the 1 car.

Secondly, the car insurance is for those you hit at your fault. If I get rear ended my insruance doesn't pay a penny (they may pay upfront) but the person that hit me has their insurance pay. If I have collision or theft that is my choice and if I am forced to because I am financing that is part of my loan terms, not the government.

Finally, auto insurance rules and requirements are set by the states not the federal government. Try moving fom one state to another and telling your insurance company them may make you change your policy due to different laws. The crux of Virginias challenge was the federal government cannot force its residents to carry health insurance since it has a law stating its residents cannot be required to carry insurance.

So to sum up; owning a car is not required, car insurance protects other not you, and auto insurance is regulated by states not the federal government.
01:53 PM on 12/14/2010
Look I don't care what the courts say or what this healthcare bill says, Everybody during their lifetimes will need to see a doctor or visit the hospital. Those who wait until they get sick or get injured to get medical treatment without healthcare, drives the costs of premiums for everyone else. Why can't you folks understand that? If you have a problem with mandates fine, but what solution do you have that will make sure "MY" premiums don't skyrocket cause I am paying the costs of uninsured folks in the emergency rooms?
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LeftCoastEng
Obsessed with failed trade
03:26 PM on 12/14/2010
I will admit, I thought the car insurance analogy was a little weak when I posted it. The more I see it discussed the stronger I think it is. One comment was the individual mandate was like having to buy flood insurance for a mountain top home. Another said the analogy wasn't valid because owning a car is not required.

My response is that both criticisms involve someone able to say with certainty that they will not need coverage (because they live on a mountain top or do not drive). The same cannot be said about medical coverage. Simply saying that "if you don't have medical insurance we won't treat you" would simply not work. I would rather have my rights slightly violated for the greater good as with a lot of laws on the books.

I was aware of the state vs. fed issue. Just can't get excited about states rights issues. Probably because I have lived in several and have no loyalty.
12:18 PM on 12/14/2010
Our Congress enacted a law with a provision requiring all citizens to buy something regardless of whether they want to or not -- and fining those who don't. It's so breathtakingly unconstitutional that you can hardly find anyone arguing that it's constitutional anymore. It's probably the main reason many of those senators and representatives were thrown out of office by the voters last month. A recent Kaiser poll says nearly 70 percent of Americans believe the individual mandate is unconstitutional. Our senators and representatives knew how the people they represent felt on that issue, and they passed the bill anyway, basically saying, "We don't care what the people who elected us to represent them think. We're smarter than they are." Thankfully, next month many of those senators and representatives will no longer represent anyone.
02:58 PM on 12/14/2010
Agree that the mandate is "breathtakingly unconstitutional" since Ben Nelson successfully had the McCarren-Ferguson Act kept in Reid's Senate Bill and the purported "compromise" final House/Senate Bill signed by Obama. The McCarren- Ferguson Act allows the insurance industry to remain monopolies by giving them an exemption from anti trust activities.
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dizmo4
03:59 PM on 12/14/2010
Everybody uses the health care system at some point in their lives.   If they do not have insurance coverage, the hospital passes on the cost of caring for the uninsured to everyone else.  So either its passed on to tax payers or to individuals in the form of higher premiums.

The point is to make people pay for their health care.
12:00 PM on 12/14/2010
The more complicated this gets, whether legally or economically, the more I think single payer is the best option. Not perfect, by any means, but the best option.
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09:37 AM on 12/14/2010
Health insurance premiums= 75% treatment+25% profit
Government health care= 97% treatment+3% administrative

Which option will lower health care costs in the US? Get an adding machine.
10:06 AM on 12/14/2010
Americans dont do math0

Think they know how to use a calculator? McCain cant turn on a computer!
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Icantbelieveher
What you do for the least of my brethren, you do f
09:24 AM on 12/14/2010
If an individual opts out of health insurance, I should be able to opt out of paying for their health care once they get sick and use the health care system without any way to pay!  change the law that mandates hospitals treat someone without insurance, should they choose not to have the coverage!  It's that simple.  One thing that has driven up the cost of health care are the people who have no insurance going to the hospital for care, and not being able to pay -- therefore the hospitals make up their losses from these people and bankruptcies through our bills!
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09:33 AM on 12/14/2010
Single payer would solve that problem for you, wouldn't it.
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Icantbelieveher
What you do for the least of my brethren, you do f
09:19 AM on 12/14/2010
Here's the conundrum for republicans.  If the courts rule the individual mandate unconstitutional, what do they do when people only buy insurance when they get sick?  Or what do they do to bring new customers to the insurance companies when they lose all their baby boomers to Medicare?  Basically, all they have to offer is to buy across state lines -- which will only move insurance companies to states with the least regulation, just like it did with credit card companies across state lines.

So, by trying to kill off the mandate, they actually remove customers from insurance companies, and I can't see how they'd be happy about that!
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h23154
08:54 AM on 12/14/2010
Without the mandate for coverage the law fails because it needs that to bring lower risk people in to the insurance pool. So regardless of severability the law becomes unworkable without that mandate. There also is a serious issue of the source of Congressional power to compel individuals to buy health insurance. It seems that a plausible argument can be made that whether or not an individual buys health insurance is not interstate commerce. It will probably be upheld under United States v. Alfonso Lopez, Jr., 514 U.S. 549 (1995), but until the Supreme Court rules it will not be settled. The worst result would be for a Circuit Court to strike down the law and then have the Supremes deny cert. or send it back for further review or a trial. That could take years.
09:25 AM on 12/14/2010
Not sure that Lopez can be used directly, since it involves the regulation of an activity that is not linked to interstate commerce or that the safe schools law never put a requirement that the posession of the gun be linked to interstate commerce. This is a bit different, being that it is inactivity that is being regulated somehow. But I agree that SCOTUS will likely uphold the district court decision in this case.

But the more important point here is your first in that the law fails completely without this provision. It was a p_o_s before. But without this provision, it is guaranteed to explode healthcare costs and exceed it's funding by trillions. A reasonable politician would recognize this and move to repeal if this decision is upheld.
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h23154
01:56 PM on 12/14/2010
Not directly, but the third criteria listed by the Court, which was used in Lopez, can be argued to apply here. Lopez held that the activity involved was not interstate commerces, so, of course, one needs to look at the reasoning. That's what the lower courts will do. But as you appear sufficiently knowledegable, you know that the Supremes are not bound by precedent, including their own.
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Prousa
Intelligence and Tolerance are not unAmerican.
08:46 AM on 12/14/2010
Hey, I know...how about a single payer system.
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09:34 AM on 12/14/2010
What an innovative idea. I wonder if Obama has thought about it.
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Gray Mouser
Former Republican
11:33 AM on 12/14/2010
Yes, I am sure he has and you know full well he has. It couldn't get into the bill. He would have signed it had it made it in the bill.

What other fool opinions do you have of the man?
03:03 PM on 12/14/2010
He did until Rahm sold him on the idea of making "deals" with Big Pharma, the Hospitals, the Insurance industry and getting Reid to kick North Dakota's Senator Dorgan's Re import Amendment out of the Senate Bill.