Virginia Health Care Reform Lawsuit OK-ed by Federal Judge

Published: Mon 02 Aug 2010

Larry Roth

A Virginia lawsuit questioning the Obama administration's health care overhaul law overcame its first legal obstacle Monday when a federal judge ruled that the legislation raises a number of complicated constitutional issues.

U.S. District Court Judge Henry Hudson's ruling stemmed from comments by Virginia Attorney General Ken Cuccinelli that Congress overstepped the bounds set by the Constitution's Commerce Clause by forcing Americans to purchase health insurance or pay a fine.

Hudson's decision rejected the attempt by the Justice Department to get the lawsuit dismissed, claiming additional hearings must occur before he can study the merits of the suit. The next hearing will take place on October 18.

"Unquestionably, this regulation radically changes the landscape of health insurance coverage in America," wrote Hudson in his 32-page ruling.

Virginia's General Assembly approved legislation this year that makes residents of the state exempt from the federal insurance mandate. Hudson claimed the attorney general has the right to defend that legislation.

In March, Cuccinelli announced that he would fight the national law. Over a dozen other attorney generals at the state level have filed a different lawsuit in Florida objecting to the federal law, but Virginia's suit is the first case to be heard before a judge.

Hudson claimed Virginia's suit raises a host of difficult constitutional questions-primarily whether Congress has the prerogative to regulate and tax an individual's refusal to participate in interstate commerce.

The health care reform law attempts to provide coverage for all Americans, requiring the majority of residents to have health coverage starting in 2014.

Health insurance companies would not be able to deny insurance for ill people under the new law, which also extends Medicaid coverage to the poor. It also offers tax credits to middle-class Americans to assist with health insurance premiums. Those experiencing financial hardship would not have to comply with the coverage mandate. On the other hand, those who can afford medical insurance but do not buy a policy would pay a tax penalty.

Today, Health and Human Services Secretary Kathleen Sebelius referred to Hudson's decision as a procedural step during a teleconference with reporters.

"That just means there will be a full hearing on the arguments. We remain confident that the case is solid and there is full constitutional backing for the passing of the Affordable Care Act," said Sebelius.

Sebelius claimed that Hudson's decision will "move us to the merits of the debate."