A federal appeals court struck down as unconstitutional the central provision of President Barack Obama's health-care law requiring most Americans get coverage, bringing the 2010 law ever-closer to the U.S. Supreme Court.

The 2 to 1 ruling is in direct conflict with an earlier ruling by a federal appeals panel in Cincinnati, which upheld the individual mandate. The provision exceeds Congress's power to regulate commerce, a U.S. appeals court panel in Atlanta ruled today, affirming a lower court in a lawsuit by 26 states.

"This economic mandate represents a wholly novel and potentially unbounded assertion of congressional authority," the majority wrote. The law requires "Americans to purchase an expensive health insurance product they have elected not to buy, and to make them repurchase that insurance product every month for their entire lives."

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
  • Informative weekly newsletter featuring news, analysis, real-world case studies, and other critical content
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.