The Supreme Court has agreed to combine three cases (National Federation of Independent Business v Sebelius, No 11-393; US Department of Health and Human Services v Florida, No 11-398; and Florida v Department of Health and Human Services, No 11-400) to review for ruling on the legal legitimacy of the Patient Protection and Affordable Care Act.
The three issues the Justices feel in need of clarification include the primary question of whether Congress overreached its authority in mandating that, just by being alive, one must purchase health insurance. Also included are the issues of severability (if the mandate is struck down, can the rest of the law be valid?) and standing (can any challenge be brought before the bar before they are in effect – i.e., before there are actual victims of the law). Oral arguments have been slated for March, and an unprecedented 5½ hours have been set aside to hear them. In the normal course of events, a ruling could be expected in June or July, probably after a Republican nominee has been virtually anointed.
Paul Heldman, senior analyst at Potomac Research Group, which provides Washington policy research for the investment community, said he still leaned toward the view that the law’s requirement that individuals buy insurance will be upheld. “We continue to have a high level of conviction that the Supreme Court will leave much of the health reform law standing, even if finds unconstitutional the requirement that individuals buy coverage,” he wrote in a recent note. I would like to see that entire note, because while I agree with him on the severability question (SCOTUS will likely leave in tact any parts of ObamaCare not overturned), but, as an advisory to investors, should have included something about the economic unfeasibility of the Act in the absence of universal participation – the mandate accounts for fully half of the admitted cost of the bill (which will undoubtedly not be close to the actual cost. Laws always cost more than their authors admit). As a legal matter, the Court may well infer severability, but as a practical matter, it cannot survive without its major funding mechanism.
The administration has pointed to other landmark laws, such as the Social Security Act, the Civil Rights Act and the Voting Rights Act, all of which enjoy a degree of universality and all of which have survived similar legal challenges. Of these, two rest on precursor acts (Social Security Act – working, and Voting Rights Act – voting), leaving the Civil Rights Act as the most congruent to the question of the mandate – one’s involuntary and irreversible ethnicity is transparent to the applicability of the Equal Protection Clause of the Constitution. It’s black letter law. The mandate is only ambiguously addressed by the Commerce Clause, and the questions raised involve a wider concern regarding the resulting freeing Congress of any limitations whatsoever.
“Let’s go right to what is your most difficult problem,” Judge Laurence H Silberman told a lawyer at an argument in September before the US Court of Appeals for the DC Circuit. “What limiting principle do you articulate? If Congress may require people to purchase health insurance, he asked, what else can it force them to buy? Where do you draw the line? Would it be unconstitutional to require people to buy broccoli?”
“No,” said the lawyer, Beth S Brinkmann. “It depends.”
“Could people making more than $500,000 be required to buy cars from General Motors to keep it in business?”
Thus is the arrogance of government in assuming that its agenda is more important than the petty concerns of its people or the requirements of law. This applies to government generally, regardless of which party occupies the White House.
Whether anyone has standing to challenge an aspect of law that has no actual victims is an interesting one. Like most issues swirling around the Affordable Care Act, there is a degree of ambiguity around this one, too.
It is Court tradition (but not a matter of law) not to grant certiorari to issues not yet in play – they deny standing to complainants who have not actually been harmed by the law they protest. The complication is one of severability, as parts of the law are already in effect, and if there is no severability and some aspect is, in fact unconstitutional, then the whole law – including that which is already in force – is unconstitutional.
The questions in play here have nothing to do with healthcare. Just as in case law, where the trial is about the behavior of plaintiff and accused, and the appeal is about the behavior of the lawyers and the judge, at the Supreme Court level, the case is about the behavior of government. This is that over which the Supreme Court has authority.
See James Vicini, Supreme Court to take on Obama healthcare law, Reuters, November 14 2011.