Facts:
Twenty-six states, as well as
private individuals and organization of independent businesses, brought action
against federal Health and Human Services (HHS), Treasury, and Labor
Departments and their Secretaries, challenging constitutionality of Patient
Protection and Affordable Care Act (PPACA).
The U.S. District Court granted
summary judgment to defendants on state plaintiffs' claim that Act's expansion
of Medicaid was unconstitutional, concluded that Act's individual mandate
provision exceeded congressional authority and was not severable, and declared
entire Act invalid.
The District Court further clarified its order and entered a
stay pending appeal.
Defendants appealed, and state plaintiffs cross-appealed as
to Medicaid expansion.
The Eleventh Circuit affirmed as to unconstitutionality
of individual mandate, reversed determination of nonseverability, and affirmed
as to constitutionality of Medicaid expansion.
Certiorari was granted.
Holdings:
The Supreme Court held that:
1.
Anti–Injunction Act did not bar
pre-enforcement suit, abrogating Liberty Univ., Inc. v. Geithner,
671 F.3d 391;
2.
individual mandate, imposing minimum
essential coverage requirement under which certain individuals must purchase
and maintain health insurance coverage, exceeded Congress's power under
Commerce Clause, abrogating Thomas More Law Center v. Obama,
651 F.3d 529, and Seven–Sky v. Holder, 661 F.3d 1;
3.
the individual mandate was a “tax”
that was within Congress's taxing powers;
4.
statutory provision giving Secretary
of Health and Human Services (HHS) the authority to penalize States that chose
not to participate in Act's expansion of Medicaid program exceeded Congress's
power under the Spending Clause; and
5.
the penalization provision was
severable.
Affirmed in part and reversed in
part.
