- Posted
- October 07, 2011
HPIO analysis: Federal Court Challenges to the ACA Individual Mandate likely heading to Supreme Cour
[Editor’s note: The following analysis is the latest in a series of health policy bulletins HPIO plans to release on timely issues involving federal or state health policy.]
By Reem Aly
Health Policy Associate
The “individual mandate” of the Patient Protection and Affordable Care Act (ACA) requires Americans to have minimum coverage health care insurance or face monetary penalties. Viewed as a centerpiece of the ACA, the individual mandate serves the purpose of expanding health care coverage and mitigating the risk of adverse selection in the health insurance market. Adverse selection occurs when less healthy people disproportionately enroll in an insurance risk pool, driving up insurance costs.
Since its enactment, the constitutionality of the mandate has undergone great scrutiny. A trio of federal appeals courts recently ruled on the issue. Federal appeals courts in the Sixth and Fourth Circuits upheld the mandate while the Eleventh Circuit ruled the mandate was unconstitutional.
The discrepancy between court decisions increases the likelihood that final judgment regarding constitutionality of the mandate will be issued by the United States Supreme Court. Notably, individual mandate cases from all three Circuit courts have been appealed to the Supreme Court. The Supreme Court may decide the issue during its next session which began in October. Final ruling on the issue would then be expected by late spring 2012.
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