The Affordable Care Act is back at center stage in the courts on Thursday with yet another legal challenge that aims to derail President Obama’s massive health care reform law.
Rather than attacking the individual mandate or the so-called contraceptive mandate, this lawsuit challenges a legislative maneuver used by Senate majority leader Harry Reid (D) of Nevada to pass the bill five years ago.
The little-noticed legal battle is being waged by a conservative public interest law group, the Pacific Legal Foundation (PLF). It seeks to enforce a constitutional command: “All bills for raising revenue shall originate in the House of Representatives.”
Lawyers for the group charge that the Affordable Care Act (ACA) was first passed by the Senate and only later approved by the House in violation of the Constitution’s Origination Clause.
The Obama administration rejects the challenge. “The Supreme Court has never invalidated an Act of Congress on the basis of the Origination Clause, and this suit presents no reason to break new ground,” Justice Department Attorney Alisa Klein wrote in her brief.
The case is set for argument on Thursday at 9:30 a.m. before three judges at the federal appeals court in Washington.
If the judges agree with the Pacific Legal Foundation, the decision would invalidate the Affordable Care Act and send health care reform back to Congress for a do-over.
If the judges agree with the Obama administration that the law was properly passed, the PLF lawyers are likely to petition the US Supreme Court to examine the issue.
It is unclear how receptive the appeals court panel will be to the PLF challenge. One of the three appeals court judges assigned to the case was appointed by Bill Clinton, the other two were appointed by President Obama.
The central issue in the case is whether in the scramble to assemble enough votes in the Senate to pass the Affordable Care Act, Democratic leaders in Congress took a shortcut that the Constitution does not permit.
The Origination Clause requires that bills seeking to raise revenue from the American people emerge first from the legislative body closest to the people themselves. The requirement is designed to maximize political accountability by forcing such measures to win initial approval among lawmakers in the House, where each member must seek reelection every two years.
Senators, with their six-year terms, are more insulated from popular pressure.
In addition to requiring that all revenue raising bills originate in the House, the Constitution permits the Senate to “propose or concur with amendments as on other bills.”
Government lawyers cite that portion of the Origination Clause as support for the Reid maneuver.
In the runup to the vote on the ACA, Senator Reid used a “shell bill” to satisfy the technical requirement that the legislation arrive from the House.
He used the Service Members Home Ownership Tax Act of 2009 as a template for the maneuver. That law, HR 3590, offered tax credits to military members who were first-time homebuyers.
Reid eliminated the entire text of the six-page law and replaced it with the 2,000-plus page bill that became the Affordable Care Act. All that remained of the Home Ownership Tax Act was the bill number, HR 3590.
After winning Senate approval, the “amended” HR 3590 was sent to the House where the Democratic majority approved it. The bill was then sent to President Obama who signed it into law in March 2010.
Once it was decided that this was indeed a tax, the logic behind this suit was retroactively true. While ramming this through they denied it was a tax. Roberts redefined it as a tax and said on that basis it could be levied. But once it became a bona fide tax, THEN it was in violation of the Origination Clause. A loophole? yes, but still, it is the law.
******************* "The best way to get a bad law repealed is to enforce it strictly." Abraham Lincoln
"Either the Republican party will reform itself or its going the way of the wind." Pat Caddell at CPAC