Litigation
The Fourth Circuit Court of Appeals today dismissed two challenges to the Affordable Care Act. In Commonwealth of Virginia v. Sebelius, the case brought by Virginia’s attorney general, the three-judge panel ruled that the state had no standing to bring the suit because the individual mandate imposes no obligations on the state. In a separate case brought by Liberty University, the court ruled that the lawsuit was premature, maintaining that the court did not have jurisdiction because the law has not yet taken effect. In each of these cases, because the court dismissed the suits on jurisdictional grounds, it did not discuss the constitutionality of the Act.
The Fourth Circuit is the latest to rule on challenges to the Affordable Care Act. The Sixth Circuit previously upheld the constitutionality of the law, and the 11th Circuit ruled that the law's individual mandate is unconstitutional. This split virtually ensures that the U.S. Supreme Court will consider the various challenges.
In other news, the Eighth Circuit Court of Appeals scheduled oral arguments for the week of October 17 in a case brought by Missouri Lieutenant Governor Peter Kinder. Kinder is seeking the overturn of a district court judge’s decision earlier this year to dismiss the case. More than 30 cases challenging the individual mandate have been filed across the country. See the Kaiser Health News “scorecard.”
Federal Update
Pre-Existing Condition Insurance Plans (PCIP) Report Released
A Government Accounting Office (GAO) report prepared for Senator Mike Enzi (R-WY) finds states were more successful than the federal government in enrolling people in temporary high risk pools, also known as Pre-existing Condition Insurance Plans (PCIP), created under the Affordable Care Act. As of April 30, the 27 state-operated plans enrolled 15,781 people, while the federally-operated pool for the remaining 23 states plus the District of Columbia had only 5,673 enrollees. The report also found that even though federal plans generally had lower premiums, the requirements for proving a pre-existing condition were more stringent. As you may recall, the federal government has since undertaken measures to ease eligibility rules, lower premiums, and step up outreach. Read The Hill story.
New Study
ACA Provisions Could Significantly Reduce High Rates of Underinsured
The number of underinsured adults rose 80 percent, from 16 million to 29 million, between 2003 and 2010, according to a new Commonwealth Fund study released today. The study also found that the underinsured were twice as likely, and the uninsured were three times as likely, to forgo care than those with adequate insurance. Once fully implemented, provisions in the Affordable Care Act could reduce the rate of underinsured by 70 percent by providing premium assistance and lowering out-of-pocket costs. The extent to which it will help will depend on the choice of plans, benefit design and health care cost trends.
As always, thank you for all you do every day to support laws and policies that help cancer patients and their families.
Christopher W. Hansen
President
American Cancer Society Cancer Action Network (ACS CAN)