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Sixth Circuit Health Care Argument: Do Republican District Judges Stand Alone?

Sixth Circuit Judge Jeffrey Sutton

To date, no court of appeals has opined on whether the Affordable Care Act is constitutional, and the trial judges — “district judges” as they are known in the federal system — who have weighed in on the issue have all split along party lines. That pattern seemed almost certain to continue after today’s oral argument in the U.S. Court of Appeals for the Sixth Circuit. Because of excessive caseloads, district judges are occasionally asked to sit on appeals panels, and the district judge asked to hear today’s case — Reagan-appointed Judge James Graham — was the only member of the three-judge panel who seemed eager to strike down health reform.

Graham’s leaning is not surprising. He previously held on states rights grounds that state employers are immune to the Family Medical Leave Act, only to have the Supreme Court reject this view in an opinion by conservative Chief Justice William Rehnquist. What was surprising, however, is that Graham may be alone among the three judges in his apparently belief that the ACA is unconstitutional.

The panel’s senior member is Judge Boyce Martin, a Carter appointee who is more likely to ride a unicorn out of the courtroom than to accept the utterly meritless arguments against the ACA. Then the third panelist is Judge Jeffrey Sutton.

Sutton is one of the judiciary’s most conservative members and a former activist for state’s rights issues. He devoted much of his career to preventing people with disabilities, religious minorities, and even children who are illegally deprived of Medicaid coverage from holding states accountable in federal court, and he served as an officer in the conservative Federalist Society’s Federalism and Separation of Powers practice group. More recently, Judge Sutton was unanimously reversed by the Supreme Court for ignoring a binding precedent he argued and won before the justices in order to hand a potentially election-changing victory to the Ohio Republican Party.

And yet Sutton seemed deeply torn between his own personal sympathy with the plaintiffs’ anti-health care arguments and the fact that there just isn’t any way to strike down this law under the Constitution or the Supreme Court’s precedents.

The plaintiffs’ sole claim is that the ACA’s provision requiring most Americans to either carry health insurance or pay slighty more income taxes violates the Constitution because that amounts to compelling people to buy a product, and compelling a purchase somehow is not allowed.  Sutton called this argument “ingenious” and praised it as a rule that the “average American understands,” but he also doubted that such a rule — if it exists — should apply to health insurance. As Sutton pointed out, nearly everyone will need to buy health care at some point because they are sick or injured, and the costs can be catastrophic. So the ACA doesn’t require people to buy anything they won’t already purchase, it just nudges them to finance that purpose through health insurance rather than paying out of pocket.

On three separate occasions, Sutton floated a potential way to “split the baby” in this case. The Supreme Court allows two kinds of challenges to a law: “facial” challenges, that claim the law must be effectively striken from the books, and “as applied” challenges, which claim that the law cannot be applied to a particular person or entity. In order to bring a facial challenge, however, a party must show that “no set of circumstances exists under which the Act would be valid.

Because the case essentially comes down to whether a person who is not currently participating in the health care market can be made to enter it, Sutton repeatedly suggested that this kind of case cannot be resolved by a facial challenge. Many people currently are insured, or are currently receiving treatment, or are very likely to receive treatment in the imminent future. All of those people are in the health care market, and should be subject to regulation even under the plaintiffs’ legal theory. By contrast, a healthy, independently wealthy individual with no insurance might not presently be participating in the health care market, and so they might be able to bring an as-applied challenge claiming that the law cannot apply to them — and only them. Thus, the ACA would be constitutional for virtually everyone, and people in exceptionally rare circumstances would be immune.

Now let’s be clear. Sutton is a deeply conservative judge. He has a history of manipulating the law to benefit the GOP, and he had plenty of skeptical questions for the solicitor general today. The smart money is still against Sutton voting to uphold the law. Moreover, the panel strongly hinted prior to today that it might dismiss the case on procedural grounds and skip the merits altogether.

Nevertheless, the fact remains that one of the judiciary’s leading conservatives — and a judge with a long history of states’ rights activism to boot — seemed worried that the case against the ACA is riddled with holes. He may vote to strike the ACA down, but he’ll have to stretch the law beyond recognition to do so.

Portland Mayor Sam Adams Proposes Including Transgender Health Benefits For City Employees

Yesterday, the mayor of Portland, Oregon, Sam Adams, told the City Council that he will submit a proposal in one week to increase health benefits to transgender employees of the city, including sexual reassignment surgery (SRS). Adams told the press he wants the city to offer the coverage in order to retain the “best and brightest employees“:

Mayor Sam Adams will ask the City Council to increase health care benefits for transgendered [sic] employees, including sexual reassignment surgery, through one of the plans offered to Portland employees. Adams plans to submit an ordinance expanding the benefits on June 8. It could be heard next week, at the earliest. [...]

“As mayor, it is important to me that we attract and retain the best and brightest employees to the city of Portland. Offering non-discriminatory health care benefits — as leading employers like Nike, Google, Microsoft and IBM do — is one way to accomplish that goal,” Adams said. “Covering basic, medically necessary care is a matter of fairness, and it’s the right thing to do.”

Local news station KATU covered the mayor’s announcement. Watch it:

The estimated cost of Adam’s proposal annually “is $32,302 — that’s a .08% increase out of the $41 million the city already spends on health care.” The city of Berkeley, California is also considering a similar proposal and a plan to offer SRS benefits in Seattle, Washington just failed. Interestingly enough, one unlikely foreign country does offer subsidized SRS benefits to citizens: Iran (but not for the same inclusive reasons).

Yglesias

When Will DC Pundits Acknowledge That The Affordable Care Act Contains Cost Control Efforts?

There’s a fair amount not to like about Washington Post editorial writer Ruth Marcus’ imagined dialogue between Barack Obama and Paul Ryan and certainly the imaginary reasonableness she attributes to Rep Ryan grates. But to me the worst thing about the column is a sentence she puts into Barack Obama’s mouth: “The current system can’t go on. I wouldn’t say this publicly, but my party’s wrong to pretend it can.”

When oh when will Democrats acknowledge the need for some changes to the Medicare status quo?

This is a great question to ask of the tiny minority of House Democrats who voted no on the Affordable Care Act back during the 111th congress. But it’s a terrible question to ask the vast majority of House Democrats who voted “yes” and also a terrible question to ask the Senate Democrats who all voted for it. The story about Republicans backing savage cuts while Democrats are in denial about the need for restraint is a comfortable one, but it bears no relationship to reality. Not only did the Affordable Care Act include specific cuts in Medicare subsidies to private insurers, it establishes a wide array of mechanisms that its authors believe will reduce the growth rate of health care spending, including in public sector programs. Hospitals were squealing about this just yesterday on the front page of The New York Times.

Back when the ACA was being debated, these measures were subjected to a lot of doubts and scrutiny from various quarters. Mostly this focused on the question of political sustainability. And that’s a fair concern. But the exact same concern has to be asked about Paul Ryan’s vouchers. You can’t slow the growth in health care spending without slowing the growth in health providers’ incomes. That’s just math and it’s a problem for everyone. But now we seem to have forgotten the sustainability concern when talking about Ryan, and forgotten the entire existence of the most important health reform in decades (except when we’re attributing magic economy-wrecking effects to it) and just pretending that Obama forgot to address the issue.

NEWS FLASH

Sen. Menendez: Medicaid Cuts Are Off The Table | Sen. Robert Menendez (D-NJ) told reporters Wednesday that the GOP’s proposal to convert the Medicaid financing structure into block grants for the states is off the table, saying the proposal “is not, in my mind, a plan that will find currency in our caucus.” “While Medicare has been the focus … Medicaid, certainly in the context of block granting, is also not acceptable,” he said. A poll released today found that 63 percent of Americans are “very concerned” about the GOP’s proposed Medicaid cuts.

Washington State Supreme Court Orders Reversal In Cuts To Medicaid For Disabled Children

The Washington state supreme court.

Across the country, states are cutting back on Medicaid spending, leaving many Americans with nowhere to go to get proper medical care.

 

In Washington state, these cuts have been deep, with the Medicaid program as of January no longer “paying for a half-dozen categories of care, ranging from adult hearing aids and eyeglasses to non-emergency dental care for most adults and Medicare Part D drug co-pays for the disabled and the elderly.” The state more recently cut $676 million from health funding for low-income people, and new premiums costs were added to Medicaid recipients whose children are undocumented.

Late last week, the Washington state Supreme Court reversed some of these Medicaid cuts, ruling that they were unfairly made. The court found that the state Department of Social and Health Services “made broad assumptions based on children’s age and living conditions instead of examining the need in each individual case.” The ruling will restore care to as many as 3,000 children who are served by the state’s children’s health care program. The court also affirmed a lower court decision that reversed cuts to 1,000 seniors receiving in-home care. Local news station KING 5 covered the court decision and interviewed one family who was depending on the care provided by Medicaid. Watch it:

 

The court’s decision is particularly relevant right now because the Obama administration is currently engaged in arguing before the Supreme Court that Medicaid “recipients and health care providers cannot sue state officials to challenge cuts in Medicaid payments, even if such cuts compromise access to health care for poor people.” Health care advocates in states from North Carolina and Arizona are also filing lawsuits to try to reverse cuts to Medicaid.

Justice

DOJ Files Brief Asking Justices To Kick Medicaid Providers Out of Court

Acting Solicitor General Neal Katyal

Federal law requires state Medicaid programs to pay doctors enough money to ensure that Medicaid patients will have access to the same quality of care as everyone else. Yet the solicitor general’s office filed an amicus brief last week siding with parties that want to render this law almost completely unenforceable:

Federal law says Medicaid rates must be “sufficient to enlist enough providers” so that Medicaid recipients have access to care to the same extent as the general population in an area.

In a friend-of-the court brief filed Thursday in the Supreme Court, the Justice Department said that no federal law allowed private individuals to sue states to enforce this standard.

Such lawsuits “would not be compatible” with the means of enforcement envisioned by Congress, which relies on the secretary of health and human services to make sure states comply, the administration said in the brief, by the acting solicitor general, Neal K. Katyal.

Essentially, DOJ claims that the Medicaid law cannot be enforced by lawsuits brought by individual Medicaid providers. Only the Obama Administration can require states to follow the law.

There are all kinds of problems with this claim, beginning with the fact that it conflicts with two well-established Supreme Court precedents. More importantly, the rule proposed by DOJ would eviscerate enforcement of Medicaid law because the administration neither has the resources to discover every violation of the statute nor sufficient resources to bring an enforcement action where ever one is needed.

Worse, what happens when President Obama leaves office — potentially to be replaced by someone much more hostile to Medicaid? If a future Administration shows no interest in enforcing the Medicaid statute, then entire provisions of law could effectively cease to exist until a more progressive president is elected.

NEWS FLASH

Hickenlooper Vetoes Fees On Kids’ Health Care | Colorado Gov. John Hickenlooper (D) vetoed legislation that would’ve added new fees the state’s childrens’ health insurance program. “We have determined that the bill poses adverse consequences on children’s access to health insurance,” said Hickenlooper. The bill “would have increased costs for some families by 1,000 percent.”

Anti-Choice Activists Exploit Joplin Disaster To Promote Anti-Abortion Agenda

Over at RH Reality Check, Robin Marty catches anti-choice activists conflating abortion with birth control in the aftermath of the natural disaster in Joplin, Missouri. Here is Bryan Kemper, a columnist for LifeNews, attacking Planned Parenthood of Missouri — which is offering free birth control and condoms to those who have been displaced — for allegedly providing “free abortions” to the displaced population:

In 2001 Planned Parenthood of NYC offered free abortions to women who lost a husband or boyfriend in the attacks on 9/11. What a wonderful sentiment to send to grieving women; (Lost your husband? Let us kill his child for free).

Planned Parenthood of Joplin, MO is following suit and offering their services for free to victims of the Tornado….Yepp, that is what these people need more than food, water, shelter and clothing; they need condoms and the pill. To quote Seth Myers and Tina Fey on Saturday Night Live, “Really”. Really Planned Parenthood? Free birth control and abortion for people who are suffering, hungry, thirsty and traumatized sounds like such a wonderful community service. Killing children is not heath care and it is certainly not disaster relief.

Marty notes that LifeNews eventually backed away from this claim and deleted the post from their website. Republicans, however, (who regularly conflate abortion with contraception) won’t abandon their efforts that easily.

NEWS FLASH

Poll: Americans Oppose Health Reform’s Repeal, Ryan’s Plan | A poll released by the Herendon Alliance and Know Your Care shows that 56 percent prefer to either give the Affordable Care Act a chance to work, make changes as needed (48 percent) or to keep it as is (8 percent). Fifty-five percent disapprove of defunding the measure. Meanwhile, 54 percent oppose Paul Ryan’s Medicare plan and high majorities are also concerned about the GOP’s cuts to the Medicaid program.

Romney’s Other Abortion Hurdle: RomneyCare

Sam Stein reports on another health care-related hurdle facing Mitt Romney as he campaigns for the GOP presidential nomination: his health reform law covers abortion services:

That Romney is already facing critical coverage on this front is entirely expected, given what he experienced the last time he ran for president. What seems different this time is the way in which he and his supporters are electing to push back. In 2008, the former governor chose to insist that his preference was for a federal approach: in which state governments outline their own abortion laws while he, as president, would seek to overturn Roe V. Wade.

This time around, defenders of the Massachusetts health care plan are basing their argument on policy grounds, insisting that Romney had no say over whether or not abortion ended up covered under the plan.

This may be true, but for conservative anti-choice activists, it won’t take the sting away from the fact that under RomneyCare, uninsured residents below 300 percent of the federal poverty level can participate in the state-subsidized Commonwealth Care program and receive a comprehensive package of benefits that includes “doctor’s visits, surgery, radiology and lab” and abortion services.

Despite all this — and his new-found opposition to abortion — Romney has described his law as the “ultimate pro-life effort,” pointing to the fact that expanding access to health coverage saves lives. “And perhaps the best thing I can say about it, it’s saving lives. It is the ultimate pro-life effort,” Romney told Fox News’ Chris Wallace in March of 2010. “[P]eople who otherwise could have lost their lives are now able to get the kind of care they deserve.” It’s a good argument, but it’s doubtful that the GOP’s conservative base will buy it.

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Paul Ryan: ‘Obamacare Ends Medicare As We Know It’

Republicans kicked up their efforts to attack Democrats on Medicare from the left this afternoon when Rep. Paul Ryan (R-WI) appeared on Fox News to argue that it’s actually the Affordable Care Act that “ends Medicare as we know it”:

RYAN: Millions of dollars of negative ads are being run to try and scare seniors and trying to confuse seniors. You know, the irony of this Bill, is with all this Mediscare that the Democrats are running, it’s Obamacare itself that ends Medicare as we know it. Obamacare takes half a trillion dollars from Medicare — not to make it more solvent but to spend on this other government program, Obamacare. And then it creates this 15 panel board of unelected, unaccountable, bureaucrats starting next year to price control and ration Medicare for current seniors.

Watch it:

It does no such thing. The ACA reduced annual increases in payments to hospitals, skilled nursing facilities, home health agencies, and other institutions to spur productivity and cut overpayments to private insurers that are not delivering value for Medicare dollars. It used that money to expand coverage to 32 million Americans — many of whom were receiving uncompensated care at these institutions — to extend the life of the Medicare program and invest in new demonstration projects that aim to encourage providers to deliver quality care more efficiently. Seniors’ guaranteed benefits are in no way affected.

The “15 panel board,” as Ryan calls it, is actually the Independent Payment Advisory Board (IPAB). It will include individuals from across the health care field, all of whom will have to be confirmed by the Senate. Significantly, their proposal to reduce spending cannot “include any recommendation to ration health care, raise revenues or Medicare beneficiary premiums…increase Medicare beneficiary cost- sharing (including deductibles, coinsurance, and co- payments), or otherwise restrict benefits or modify eligibility criteria” (Section 3403 (page 409) of the Affordable Care Act stipulates.)

Policy wonks believe that the board and the payment reforms can help reduce costs in a transparent process and Ryan himself proposed a very similar commission in 2009 and maintains many of the ACA’s Medicare cuts in his plan. In fact, Ryan’s Patients’ Choice Act (PCA) sought to establish “two governmental bodies to broadly apply cost effectiveness research” and had more teeth than the ACA, including provisions to allow for penalties for physicians who did not follow the guidelines.”

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NEWS FLASH

Sen. Bernie Sanders’ Rx Reform | Dean Baker reports that Sen. Bernie Sanders’ (I-VT) bill would create a prize fund to buy drug patents owned by drug companies “so that drugs could then be sold at a free market price. Sanders’s bill would appropriate 0.55 percent of GDP (about $80 billion a year, with the economy’s current size) for buying up patents, which would then be placed in the public domain so that any manufacturer could use them at no cost”:

The country is projected to spend almost $300bn a year on prescription drugs this year. Prices would fall to roughly one-tenth this amount in the absence of patent monopolies, leading to savings of more than $250bn. The savings on lower drug prices should easily exceed the size of the tax, leaving a substantial net reduction in costs to the government and private insurers.

Pawlenty’s 2006 Flirtation With Universal Coverage: ‘Intrigued’ By Mandate, Supported Medicaid Expansion

Last week, Ben Smith reported that likely presidential candidate and former Minnesota Gov. Tim Pawlenty expressed interest in the individual mandate in 2006, calling the provision a “potentially helpful,” if incomplete, solution to covering the uninsured. “Pawlenty described a Massachusetts-style mandate in his speech as ‘a worthy goal and one that we’re intrigued by and I think at least open to,’ but suggested that the central health care problem was not forcing people to buy insurance but helping them afford it.”

A review of Pawlenty’s 2006 remarks, however, betray much broader support for expanding access to universal coverage and reforming the health care system. For instance, during the same November 11, 2006 health care forum, Pawlenty — fresh off a close election victory for his second term — said his administration has been “studying very diligently the Massachusetts model about how that would apply to Minnesota” and pledged to “move in stages” toward “universal coverage.” “Everyone should be in a health plan of some sort…but I think as a goal we should start with covering all kids,” he said.

His statements were met with surprise from reporters and Democrats in the state. At the time, the Star Tribune described Pawlenty’s endorsement of covering all children as “a sweeping policy departure that aligns with a top agenda item of the newly elected DFL legislative majorities”:

Senate Health and Family Security Committee Chairwoman Becky Lourey, DFL-Kerrick, who is retiring from the Legislature after an unsuccessful run for governor and what she said was 20 years of advocacy for universal health care, praised Pawlenty’s shift.

“It’s very exciting to hear the governor talk like this,” she said. “If he wants to be a leader, Minnesota is the state to move forward with universal health coverage. And this coming year will be the year to do it.” [...]

Pawlenty said his administration is studying health care reforms in Massachusetts, Utah and elsewhere for guidance on how to proceed in Minnesota. But he emphasized that “giving more access to a broken system does not ultimately fix the problem”…He also warned that the greatest challenge of establishing universal health coverage will be managing “a modest and affordable benefit set” in a political environment.

But Pawlenty went further, proposing to expand the state’s Medicaid program — a critical element of the Affordable Care Act:

Pawlenty didn’t outline specifics for expanded children’s coverage, but said options include extending the MinnesotaCare health plan for the working poor or creating a children’s insurance program with fewer services than those required for adults.

His flirtation with universal coverage did not go over well with conservatives, however. Star Tribune columnist Katherine Kersten interpreted Pawlenty’s comments as a push to “use the machinery of government – and a ‘surplus’ of taxpayer money – to ‘start moving toward universal health coverage.’” “He proposes either to expand MinnesotaCare, the state’s publicly subsidized health coverage program, or create a brand new state program,” she warned.

As he pursues the GOP nomination, Pawlenty no longer calls for establishing universal coverage or expanding Medicaid. Instead, he now supports repealing the near-universal Affordable Care Act and replacing it with a yet-to-be-announced proposal.

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The Morning CheckUp: June 1, 2011

Welcome to The Morning CheckUp, ThinkProgress Health’s 7:00 AM round-up of the latest in health policy and politics. Here is what we’re reading, what are you?

- Mitt Romney’s abortion hurdle: While Massachusetts health reform did not specifically mention abortion, “[e]stablished court precedent in Massachusetts is that if the state is going to subsidize health care services, they must offer abortion services” — which RomneyCare does. [Sam Stein]

- Tim Pawlenty is a big fan of pay for performance: a proposal that “seems to echo an idea that President Obama has not only supported, but also introduced as a key part of the Affordable Care Act.” [Suzy Khimm]

- New York slow to establish exchanges: as are other states struggling to pass “legislation to set up the new online marketplaces for insurance.” [Politico]

- Oral arguments in the 6th Circuit: A three-judge panel in Ohio will hears arguments in Thomas More Law Center’s challenge of the Affordable Care Act, making it the second appeals court “to hear oral arguments in a healthcare reform case.” [The Hill]

- Protecting Medicaid: “A Democratic briefing for several dozen Medicaid advocates on Republican plans to cut the program by close to $750 billion resulted in what one participant called a ‘clarion call’ to action.” [The Hill]

- Worldwide spike in long-term care: By 2050, the demand for long-term care (LTC) workers will more than double in the developed world, from Norway and New Zealand to Japan and the U.S. [Health Populi]

- Uninsured have very little skin to put in the game: A Commonwealth survey found that “young adults ages 19 through 29 are among the groups most likely to be uninsured, with some 15 million of them lacking coverage in 2009, according to census data.” [NYT]

- Connecticut exchanges move forward: The state Senate “passed legislation to create a health insurance exchange” yesterday, sending the bill to the House. [CT Monitor]

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