http://content.usatoday.com/communities/theoval/post/2010/12/obamas-health-care-law-loses-in-court/1
Obama's health care law loses first round in court
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A federal judge in Virginia has struck down the Obama administration's requirement that all Americans buy health insurance, a key provision in the landmark health care bill that the president signed in March.
Today's ruling, if upheld, could undercut the entire health care plan, though U.S. District Judge Henry Hudson wrote that his decision will surely be appealed -- probably all the way to the U.S. Supreme Court.
"The outcome of this case has significant public policy implications," Hudson wrote. "And the final word will undoubtedly reside with a higher court."
Hudson ruled that the individual mandate "exceeds the constitutional boundaries of congressional power." He added that he won't stop implementation of the law as various challenges wind their way through the courts, noting that many provisions won't take effect until at least 2014.
The Richmond-based judge did pass judgment on provisions of the law placing new restrictions on the health insurance industry, saying they were not related to the requirement all Americans buy health insurance.
But many new requirements -- requiring insurance companies to deny coverage to people with pre-existing conditions or who are ill -- hinge on the insurance mandate, creating a larger insurance pool that can reduce costs.
Hudson, a Republican appointed by President George W. Bush, is the first federal judge to strike down the law that Obama signed in March. The landmark bill has been upheld by judges in Virginia and Michigan, and several other lawsuits are pending.
Republicans who opposed the health care bill hailed Hudson's ruling against the requirement that all Americans buy insurance.
"Liberty requires limits on government, and today those limits have been upheld," said Sen. Orrin Hatch, R-Utah.
Rep. Eric Cantor, R-Va., who becomes Majority Leader when Republicans take control of the U.S. House next month, again vowed "a clean repeal of ObamaCare."
In his 42-page opinion, Judge Hudson wrote that "at its core, this dispute is not simply about regulating the business of insurance -- or crafting a scheme of universal health insurance coverage -- it's about an individual's right to choose to participate."
In briefs and oral arguments, Obama administration attorneys -- as they have in other cases -- said the Commerce Clause of the Constitution gives Congress the authority to require the purchase of insurance; they also cited Congress' taxing authority.
The insurance requirements are a "penalty," not a "tax," Hudson ruled. As for the Commerce Clause, the judge said no appeals court has said it can "compel an individual to involuntarily enter the stream of commerce by purchasing a commodity in the private market."
Washington and Lee University law professor Timothy Jost, an expert on the health-care law, said other judges who have upheld the law interpreted the Commerce Clause more broadly to cover economic decisions that are more passive -- namely, the refusal to buy insurance. Jost said that when people choose not to buy health insurance they are still making an economic decision and affecting the nation's commerce.
(Posted by David Jackson, Richard Wolf and Joan Biskupic)