Monday, December 13, 2010

Health Care Statute Exceeds Congressional Power

The United States District Court for the Eastern District of Virginia today held that a portion of the Health Insurance Reform Act is unconstitutional. Specifically, in Commonwealth of Virginia v. Sebelius, the Court held that Section 1501 of the Act: the Minimum Essential Coverage Provision exceeded the power of Congress granted to Congress in the Commerce Clause. A copy of the opinion is found here.

The Minimum Essential Coverage Provision essentially penalized individuals who did not purchase at least a minimal level of health insurance. The United States argued that the Provision was in the nature of a tax, but the Court agreed with the Commonwealth of Virginia which argued that the Provision was in the nature of a penalty.