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1 1 (December 23, 2019)

handle is hein.crs/govbiwy0001 and id is 1 raw text is: ~* or 101 ' Researh Servi kM- Fifth Circuit Holds the Individual Mandate Unconstitutional: Implications for Congress December 23, 2019 On December 18, 2019, the U.S. Court of Appeals for the Fifth Circuit (Fifth Circuit) issued its decision in Txas v. U nited States on the constitutionality of the Patient Protection and Affordable Care Act's (ACA's) requirement for individuals to maintain health insurance (the so-called individual mandate) and the continued validity of the remainder of the Act. The Fifth Circuit affirmed a district court ruling that Congress lacked the constitutional authority to enact the individual mandate, as amended by the subsequent 2017 tax revision, but declined to resolve a broader issue: what happens now to the ACA's remaining provisions? The Fifth Circuit reversed the district court's decision on this severability question and sent the case back to the district court to explain with precision how particular portions of the ACA as it exists post-2017 rise or fall on the constitutionality of the individual mandate. This Sidebar provides background on Texas; discusses the Fifth Circuit's decision; highlights potential effects of the decision and possible next steps for the case; and identifies legislative options for Congress. Background Enacted in 2010, one of the ACA's central goals was to increase the number and share of Americans who are insured. In addition to sweeping changes to federal private health insurance regulation, income- based subsidies to facilitate the purchase of health insurance, and substantial increases to the scope of Medicaid coverage, the ACA, as originally enacted, also compelled certain individuals to maintain health insurance and imposed financial penalties on those who failed to do so. These latter provisions form what is commonly referred to as the individual mandate. In addition, the ACA includes other provisions covering an array of issues ranging from health care workforce promotion to improving access to innovative medical therapies. Litigation over the constitutionality of the individual mandate is not new. In 2012, the Supreme Court addressed this issue in a landmark case, National Federation of Independent Business v: Sebelius (NFIB). In NFIB, five Supreme Court Justices concluded that neither Congress's authority to regulate interstate commerce nor its derivative authority to enact necessary laws to effectuate its enumerated powers empowered Congress to enact the individual mandate. These Justices explained that while the Commerce Clause allows Congress to regulate existing commercial activity, it does not bestow Congress with the authority to compel individuals to become active in commerce. Nonetheless, a different group of five Congressional Research Service https://crsreports.congress.gov LSB10389 CRS Leg Sidebw Prepaed for Membeivs and Cornm ittees o4 Corq ess ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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