DOJ Lawyers Try New Tricks To Undo Obamacare. Will It Work?
Once again, the fate of the Affordable Care Act is before the courts. The health law has traveled all the way to the Supreme Court (twice!) and is highly likely to make another visit.
On that path, the law made a stop Tuesday before a three-judge panel of the 5th Circuit Court of Appeals in New Orleans. Both sides presented , interrupted, at times, by sharp questions from two of the judges.
For those just tuning in, the Trump administration is not defending the nine-year-old ACA.
It instead has sided with the to have the law overturned.
In doing so, Department of Justice lawyers appeared to use strategies and take positions that sounded somewhat unconventional to a layperson. But are they?
KHN checked with some legal experts for their take.
For starters, this is the third time the administration has changed its position. Does this often happen?
No. Itās unusual for an administration to shift its own legal opinions during the case, say experts.
When the lawsuit was filed, the only the parts of the law tied to a requirement that most Americans carry insurance, the so-called individual mandate, should be tossed. (Thatās a pretty big part, which includes protections for people with preexisting conditions.)
The red-state plaintiffs, conversely, argued that the entire law should go, pointing to Congressā 2017 vote to zero out the individual mandateās tax penalty. The Supreme Courtās 2012 decision to preserve the ACA hinged on that penalty.
But, last December, a in Texas sided with the states, saying the whole law should be tossed, which would affect provisions as diverse as the preexisting condition protections, Medicaid expansion and calorie counts on restaurant menus.
Thatās when the its position to agree that, indeed, the whole thing had to go.
And thatās rare.
āYou donāt usually say, āOh, never mind,āā said Tom Miller, resident fellow at the conservative American Enterprise Institute. āItās unusual to do that flip.ā
But thatās not the last flip. came up in legal papers filed shortly before the Tuesday hearing and in oral arguments.
DOJ attorney August Flentje told the appeals court that, well, maybe only those provisions of the law that directly affect the plaintiffs ā the 18 states ā should be struck.
āItās complicated,ā he admitted, calling to mind a made in 2017 by President Donald Trump amid the repeal debate in Congress: āNobody knew that health care could be so complicated.ā
Even as this legal challenge works its way through the courts, the ACA remains the law of the land. The evolving legal positions, however, are fodder for professors.
āIām teaching a class this fall and this gives me more material,ā said Miller. āBut if I had to consistently try to argue a position at the DOJ, I would go crazy.ā
So, the government wants to skewer some provisions of the law, but not others ā and have those changes apply only in some states. How would that work? Ā
Questions about that argument came from 5th Circuit Judge Jennifer Walker Elrod, appointed by President George W. Bush in 2007.
The government wants to have it apply āin certain states and strike it down in certain states?ā Elrod asked. āThe government believes thatās a possibility?ā
Unasked but implicit: How would some states enforce the law and not others?
Flentje said āa lot of that would have to get sorted outā but not until after all the appeals in the case are exhausted.
Behind the argument may well be an ongoing dispute in the legal community about whether lower-court judges should make decisions that have nationwide implications, said John Malcolm, director of the conservative Heritage Foundationās Edwin Meese III Center for Legal and Judicial Studies. Still, it would be difficult, he said, for the ACA to be declared unconstitutional in some states, but remain in effect elsewhere.
Beyond that legal question, such a position has financial and policy implications for consumers and state regulators.
āIt would create a very untenable situation for the rest of the states,ā said Mila Kofman, executive director of the DC Health Benefit Exchange Authority, where individuals and small businesses buy health insurance.
Some of the very sickest people in the states where the rules were dropped would likely move to states keeping the preexisting condition protections so they could maintain their insurance, she said. That could drive up costs in those areas.
Arguments Tuesday revolved around whether parts of the law were āseverableā from other parts. Did it seem the government wants it both ways ā to toss the entire law, but also keep parts of it?
Elrod again queried Flentje.
The government wants the health insurance provisions to go, but āyou would leave in the calorie guide?ā Elrod asked, referring to the ACAās requirement that chain restaurants display calorie counts of menu items.
Flentje said the governmentās āargument on scope is totally separate from argument on severability.ā
She pressed him for clarification: āSo, are you saying itās entirely inseverable, or arguing that some parts can be kept?ā
The governmentās position remains that āthe entire act is not severable,ā he replied, adding, however that the judgment could be ānarrowed a bit to provisions that injure and impact the plaintiffs.ā
He suggested some of those details would still have to be worked out.
āTheyāve gone from saying a couple of provisions have to go to the whole thing has to go, to now there are some things we might not have to get rid of,ā said Miller. āBut theyāve never defined how far back down the ladder to go.ā
A ruling by the appeals court isnāt expected for weeks or months, and some questions may well return to the district court.