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First Appellate Holding: PPACA is Constitutional

On June 29, 2011, the 6th Circuit Court of Appeals issued the first appellate decision with regard to the constitutionality of the Patient Protection and Affordable Care Act ("PPACA").  In a split decision (2-1), the court upheld the minimum coverage provision of PPACA (also know as the 'individual mandate') as constitutional.  The individual mandate essentially fines non-exempt persons for not securing minimum essential health insurance coverage. The court noted that this provision was effectively a regulation on the practice of self-insuring (an individual's actions in arranging his or her own financial affairs to compensate for future health care needs).

The provision was held constitutional because it regulated economic activity that Congress could rationally believe (1) had a substantial effect on interstate commerce and (2) was essential to the larger economic scheme reforming the interstate markets in health care and health insurance. Disagreeing with the argument that the provision regulated inactivity, the court stated that the provision actually regulated active participation in the health care market but, nonetheless, Congress could regulate inaction.

It will be interesting to see how the 4th and 11th Circuit Courts of Appeal will rule on this issue in similar cases and whether the US Supreme Court will become involved. Stay tuned for future developments on this hotly contested topic.

Categories: Health Care Reform, Insurance

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With a business-minded approach, and service-oriented delivery, Mindi helps clients navigate challenges and solve problems in the areas of employee benefits law and health care law. Mindi has spoken and written extensively on employee benefits, health care reform, and health care law topics, and is actively involved in a number of legal, professional and industry organizations focused on these issues.

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Best Lawyers® 2021

Congratulations to the attorneys of the Health Care practice group at Foster Swift Collins & Smith, PC for their inclusion in the Best Lawyers in America 2021 edition. Firm-wide, 44 lawyers were listed. Best Lawyers lists are compiled based on an exhaustive peer-review evaluation and as lawyers are not required or allowed to pay a fee to be listed; inclusion in Best Lawyers is considered a singular honor. Health Care practice group members listed in Best Lawyers are as follows:

To see the full list of Foster Swift attorneys listed in Best Lawyers 2021, click here.