Federal Appeals Court Dismisses Two Challenges to the Individual Mandate
September 9, 2011
On September 8, 2011, the U.S. Court of Appeals for the 4th Circuit in Richmond, Virginia issued rulings on two appeals. They dismissed lawsuits by the State of Virginia and Liberty University that challenged the constitutionality of the Patient Protection and Affordable Care Act’s (PPACA) individual mandate.
Both cases were dismissed on procedural grounds, so the court did not consider the constitutional challenges to the individual mandate in the PPACA.
In the State of Virginia case, the court ruled that the state did not have the legal right to challenge the constitutionality of the individual mandate. Virginia was challenging the individual mandate on the grounds that Virginia has a state law that individuals cannot be forced to buy health insurance.
In the Liberty University case, the court ruled that a federal tax law prevented them from considering the case because the mandate imposes a tax that has not yet been collected.
In June, the 6th Circuit Court of Appeals in Cincinnati upheld the constitutionality of the individual mandate. In August, the 11th Circuit Court of Appeals in Atlanta ruled it unconstitutional. This issue is expected to eventually be decided by the Supreme Court.
Please bookmark http://informedonreform.com for the latest news and updates.
This document is for general informational purposes only. While we have attempted to provide current, accurate and clearly expressed information, this information is provided "as is" and Cigna makes no representations or warranties regarding its accuracy or completeness. The information provided should not be construed as legal or tax advice or as a recommendation of any kind. External users should seek professional advice from their own attorneys and tax and benefit plan advisers with respect to their individual circumstances and needs.This message has been sent to you to provide information that may be helpful to your business, and to provide an opportunity to give us your requests and general feedback. This alert is not intended for distribution to potential or active customers or enrollees. "CIGNA" and the "Tree of Life" logo are registered service marks of Cigna Intellectual Property, Inc., licensed for use by Cigna Corporation and its operating subsidiaries. All products and services are provided exclusively by such operating subsidiaries and not by Cigna Corporation. Such operating subsidiaries include Connecticut General Life nsurance Company (CGLIC), Tel-Drug, Inc. and its affiliates, Cigna Behavioral Health, Inc., Intracorp, and HMO or service company subsidiaries of Cigna Health Corporation and Cigna Dental Health, Inc. In California, HMO plans are offered by Cigna HealthCare of California, Inc. and Great-West Healthcare of California, Inc. All other medical plans in California are insured or administered by CGLIC. CGLIC has acquired the business of Great-West Healthcare. 01/11 © 2011 Cigna