States challenging President Barack Obama's health-care overhaulasked the U.S. Supreme Court to intervene, saying a federal appealscourt didn't go far enough when it invalidated a portion of thelaw.

Adding to calls for the high court to determine the fate of thelaw, the 26 states, led by Florida, said today the entire measureshould be invalidated. The Justice Department signaled earlier thisweek that it will file its own Supreme Court appeal in thecase.

The Atlanta-based appeals court gave the states a partialvictory in their suit challenging the law, ruling that Congresslacked the constitutional power to require people to either getinsurance or pay a penalty. At the same time, the court said itwould strike down only the insurance mandate, leaving intact otherprovisions, including a requirement that insurers accept applicantswith pre-existing conditions.

There is “compelling evidence that Congress intended the mandateto function as the act's essential lynchpin and would never havepassed the act without it,” the states argued in a Supreme Courtfiling.

The states are also asking the high court to review the law'sexpansion of Medicaid, the joint federal-state health-care programfor the poor. The appeals court upheld that provision, rejectingcontentions that it improperly coerces states into spendingadditional money.

Pending Appeals
The states asked the high court to move quickly to review theAffordable Care Act, as the law is known. With three appeals nowpending — and a federal government appeal due in mid- November —the justices could consider the case early next year and rule inJune.

“Time is of the essence,” the states said in their filing.“States need to know whether they must adapt their policies to dealwith the brave new world ushered in by the ACA.”

The Justice Department is scheduled to file a brief today in aseparate Supreme Court case related to the health-care law. In thatdispute, a Michigan public interest law firm is seeking review of adifferent appeals court's conclusion that the law isconstitutional.

A small-business trade group, the National Federation ofIndependent Business, filed its own appeal earlier today, alsoasking the high court to invalidate the law.

The states' case is Florida v. U.S. Department of Health andHuman Services.

Bloomberg News

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