Virginia appeals court dismisses challenge to health care law

Posted on: Monday, September 12, 2011

Health insurance leads often represent a significant portion of agents' clientele base. Should President Barack Obama's Affordable Care Act become law, it will likely have a profound effect on the insurance landscape, as citizens will be required to purchase coverage. Last week, a decision was passed down by an appeals court that increases that likelihood.

Several states have questioned the constitutionality of requiring Americans to buy health insurance. One of those states is Virginia. However, the 4th Circuit U.S Court of Appeals court found that the state didn't have the authority to challenge the legislation.

"Virginia, the sole plaintiff here, lacks standing to bring this action," said the ruling. "Accordingly, we vacate the judgment of the district court and remand with instructions to dismiss the case for lack of subject-matter jurisdiction."

Meanwhile, other appeals have issued rulings saying the healthcare plan is unconstitutional.

Legal experts say the legislation will likely wind up before the U.S. Supreme Court. The justices' decision will likely have a significant impact on how health insurance is bought and sold in the country.

Posted In: Insurance News, Health Insurance

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