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A federal judge in Virginia ruled Monday that Congress exceeded its power by mandating that everyone have health insurance, marking the first major legal setback for President Barack Obama's signature health care law.
Sen. Orrin Hatch, R-Utah, called the ruling "a great day for liberty" while backers of the complicated law meant to extend health coverage to America's uninsured downplayed its significance, arguing it's no more important than decisions by other federal judges who have upheld the law or dismissed complaints on procedural grounds.
"This is one judge, one circuit court among many that are hearing arguments. And they found one provision of the famed 2,000-page plus bill unconstitutional," said Lincoln Nehring, a health policy analyst at Voices for Utah Children.
Either way, Monday's ruling — the first to invalidate the Affordable Care Act — sets up a showdown likely to be decided months, or years, from now by the U.S. Supreme Court.
Utah is among 20 states that filed a similar suit that's still pending before a federal judge in Florida. And though not binding on Utah's case, the Virginia ruling "certainly represents a step in the right direction," said Utah Gov. Gary Herbert.
In two other cases, judges determined the insurance mandate was legal. But federal Judge Henry E. Hudson disagreed in the suit brought by the state of Virginia.
"At its core, this dispute is not simply about regulating the business of insurance — or crafting a scheme of universal health insurance coverage — it's about an individual's right to choose to participate," wrote Hudson in the 42-page ruling.
His decision sounds quite similar to the opinion of Hatch, the Senate's most vocal opponent against the insurance requirement known in Washington as the individual mandate.
"Congress must obey the Constitution rather than make it up as we go along," Hatch said following the ruling. "Liberty requires limits on government, and today those limits have been upheld."
The requirement that everyone purchase health coverage or face a fine doesn't take effect until 2014. It's a reform strategy espoused by liberal organizations and conservative groups like the Heritage Foundation.
Hatch once backed a bill with a similar requirement but said after further consideration, he believes Congress can't tell people how to spend their money. He has a bill that would strip the individual mandate from the law, and he signed on to a legal brief by Republican senators supporting the case in Florida.
White House spokesman Robert Gibbs said the ruling didn't shake the president's belief that courts will find the law constitutional, pointing to two recent rulings that backed their position.
"We are confident that the Affordable Care Act will be upheld," he said.
Hudson's ruling doesn't invalidate the entire health reform law, only the requirement to buy insurance — and only the federal government's right to impose such a requirement.
"Nothing forbids states from imposing their own mandates" as Massachusetts has done, Nehring said.
Insurance companies generally support the individual mandate, believing it is necessary to offset the cost of other requirements, such as a ban on charging women more than men and a prohibition on denying coverage because of a previous health condition.
The law includes five pages devoted to defending the constitutionality of the individual mandate, making the case that it would benefit interstate commerce. "If there were no requirement, many individuals would wait to purchase health insurance until they needed care," the law states.
But arguing the end justifies the means doesn't wash for Utah Deputy Attorney General John Swallow. "It's one thing to regulate interstate commerce. It's another to legislate. If Congress can do this with health insurance, there's nothing to stop them from doing it with other marketplaces."
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What happened
A federal judge in Virginia ruled a keystone provision in the Obama health overhaul is unconstitutional.
What's next?
Another legal challenge filed by Utah and 19 other states is still pending before a federal judge in Florida. A hearing on a motion to dismiss is scheduled for 9 a.m. Thursday.