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CCH® BENEFITS — 11/14/11

Appeals Court Rules Health Law’s Individual Mandate Constitutional, As Ohio Voters Reject It

from Spencer’s Benefits Reports: On November 8, the District of Columbia Circuit Court of Appeals upheld the Patient Protection and Affordable Care Act’s (ACA) individual mandate—the same day that Ohio voters rejected it.

In Seven-Sky vs. Holder (No. 11-5047), a panel of the D.C. Circuit Court of Appeals issued a split opinion upholding a lower-court ruling that found Congress did not overstep its authority in requiring people to have health insurance or pay a penalty on their taxes. The ACA requires most individuals to purchase health insurance by 2014 and imposes a penalty on most who do not comply.

Federal appeals courts have issued conflicting rulings on the constitutionality of the individual mandate. Although several courts have upheld the constitutionality of the law and the mandate, as of October 2011, two appeals courts have declared the mandate unconstitutional. It is now expected that in early 2012 the Supreme Court will consider the fate of the individual mandate.

For more information on the D.C. Circuit Court of Appeals ruling, visit http://www.cadc.uscourts.gov/internet/opinions.nsf/055C0349A6E85D7A8525794200579735/$file/11-5047-1340594.pdf.

Ohio Referendum

By a two-to-one margin, Ohio voters endorsed a constitutional amendment that attempts to exempt state residents from the ACA’s individual mandate.

Issue 3, as the item is known in the state, adds an amendment to Ohio’s Constitution stating that “no law or rule shall compel, directly or indirectly, any person, employer, or health care provider to participate in a health care system.” It affects laws and rules put in place after March 19, 2010.

Despite the overwhelming vote, the amendment will not exempt Ohio from the individual mandate because federal law trumps state law. The constitutionality of the health care mandate will be decided by the Supreme Court, not Ohio voters.

For more information on this and related topics, consult the CCH Pension Plan Guide, CCH Employee Benefits Management, and Spencer's Benefits Reports.

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