Federal Health Care Legislation Update

Sixth Circuit Upholds the Constitutionality of PPACA

On June 29, 2011, the Sixth Circuit Court of Appeals issued the first appellate court decision on the constitutionality of the Patient Protection and Affordable Care Act ("PPACA"). In a 2-1 decision, the Sixth Circuit held that PPACA is a valid exercise of the federal government's power under the Commerce Clause of the Constitution. Thomas More Law Center, et al v. Obama, et al, No. 10-2388 (6th Cir. June 29, 2011).

The constitutional challenge is aimed at the minimum coverage provision of PPACA. Under the minimum coverage provision, all applicable individuals must maintain minimum essential coverage or pay a penalty. 26 U.S.C. §5000A. The plaintiffs alleged that (1) Congress lacked authority under the Commerce Clause to enact the minimum coverage provision and (2) the penalty for a failure to maintain minimum coverage is an unconstitutional tax.