SILKIN MANAGEMENT GROUP: UPDATE ON OBAMA-CARE LEGAL APPEALS

by Silkin Management Group on June 3, 2011

Given that the Obama health care legislation will affect all small businesses and their
employees throughout the country, we’ve attempted to keep Silkin Management Group
clients, and anyone else reading our various Silkin Management Group blog sites,
informed about the progress of the several lawsuits attempting to derail this law. Here’s the latest update for Silkin Management Group clients and non-clients alike.

At least three different appeals courts will decide whether the government can force every citizen to buy health insurance. One of those courts heard oral arguments from both sides yesterday in Cincinnati. The arguments centered around the limits of congressional power and whether this law exceeded the regulatory power given to Congress under the Constitution. Opponents are arguing that the law far exceeds these powers while the lawyers for the Administration state that the law is simply a regulatory law concerning commerce.

The essence of each side’s argument was elucidated by a “broccoli” example. Mr. Muise, attorney for the Thomas More Law Center, stated that if such a congressional mandate is acceptable, then “there’s virtually no limit to Congress’s power to regulate anything from health care to eating broccoli.” The Justice Department’s attorney, Mr. Katyal, rebutted by saying, “I can’t show up at the broccoli store without money and buy broccoli” whereas in the health care market one can get medical services without the ability to pay.

The District Court in Detroit rejected the suit by the Thomas More Law Center last year stating that their argument that compulsory health care coverage equaled an illegal tax was not true. The law center then appealed resulting in these oral arguments. Two of the three appellate judges hearing this case were appointment by previous Republican administrations.

Two other federal courts have upheld the law and and two courts have ruled that either all or parts of the law are unconstitutional. All of those rulings are also being appealed. The next appellate case will hear arguments next week, and we’ll keep readers of our Silkin Management Group blog sites updated as we follow those oral arguments.

Jack Hennessy
Silkin Management Group Consultant

For more information about Silkin Management Group, visit our website atwww.silkinmanagementgroup.coM

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