New Jersey Physicians, Inc. v. Obama

757 F. Supp. 2d 502, 2010 U.S. Dist. LEXIS 129445, 2010 WL 5060597
CourtDistrict Court, D. New Jersey
DecidedDecember 8, 2010
DocketCivil Action No. 10-1489 (SDW) (MCA)
StatusPublished
Cited by7 cases

This text of 757 F. Supp. 2d 502 (New Jersey Physicians, Inc. v. Obama) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
New Jersey Physicians, Inc. v. Obama, 757 F. Supp. 2d 502, 2010 U.S. Dist. LEXIS 129445, 2010 WL 5060597 (D.N.J. 2010).

Opinion

OPINION

WIGENTON, District Judge.

Before the Court is Defendants’ Motion to Dismiss pursuant to Federal Rules of Civil Procedure 12(b)(1) and 12(b)(6). This Court has jurisdiction under 28 U.S.C. §§ 1331, 2201, and 2202. Venue is proper pursuant to 28 U.S.C. § 1391. The Motion is decided without oral argument pursuant to Federal Rule of Civil Procedure 78. For the reasons stated below, this Court grants Defendants’ Motion to Dismiss.

FACTUAL AND PROCEDURAL BACKGROUND

This suit — one of many filed throughout the country — raises a Constitutional challenge to the recently enacted federal healthcare reform law, known as the “Patient Protection and Affordable Care Act” (“Act”), Pub.L. No. 111-148, 124 Stat. 119 (2010), amended by Health Care and Education Reconciliation Act of 2010, Pub.L. No. 111-152, 124 Stat. 1029 (2010). The Act was signed into law by Defendant President Barack Obama on March 23, 2010. Plaintiffs New Jersey Physicians, Inc., (“NJP”), Mario A. Criscito, M.D., (“Dr. Criscito”), and Patient Roe (“Roe”) (collectively “Plaintiffs”), seek a declaration that the Act is not a valid exercise of Congress’s power under the Commerce Clause or any of the federal government’s enumerated powers. (Pis.’ Compl. ¶¶ 1-3, 17, 22.) Additionally, Plaintiffs allege that the Act violates their Fifth Amendment rights. (Id at ¶ 20.) NJP is a non-profit New Jersey corporation which “advocates for its physician members and their patients.” (Pis.’ Compl. ¶ 1.) Its “primary purpose [is] the protection and advancement of patient access to affordable, quality healthcare.” (Id) Dr. Criscito, a cardiologist, is a member of NJP, (Id at ¶ 2), and Roe is Dr. Criscito’s uninsured patient. (Id at ¶ 3.)

*504 According to Congress’s finding, “[national health spending is projected to increase from $2,500,000,000,000, or 17.6 percent of the economy, in 2009 to $4,700,000,000 in 2019.” §§ 1501(a)(2)(B), 10106(a); see also Douglas W. Elmendorf, Director, Cong. Budget Office (“CBO”), Economic Effects of the March Health Legislation, 5 (Oct. 22, 2010) (“[tjotal spending on healthcare now accounts for about 15 percent of [the] GDP, and CBO projects that it will represent more than 25 percent by 2035.”). Additionally, Congress found that sixty-two percent “of all personal bankruptcies are caused in part by medical expenses.” §§ 1501(a)(2)(G), 10106(a). Consequently, the purpose of the Act is to provide affordable health insurance, and to reduce the number of uninsured Americans “and the escalating costs they impose on the healthcare system.” Thomas More Law Ctr. v. Obama, 720 F.Supp.2d 882, 886 (E.D.Mich.2010).

As part of the effort to provide affordable health insurance and lower the number of uninsured Americans, § 10106(a), the Act contains a “minimum essential coverage” provision, which states: “[a]n applicable individual shall for each month beginning after 2013 ensure that the individual, and any dependent of the individual who is an applicable individual, is covered under minimum essential coverage for such month.” § 1501. 1 Congress included this mandatory minimum coverage because it found that “if there were no [such] requirement, many individuals would wait to purchase health insurance until they needed care,” and would therefore undermine the purpose behind the Act. §§ 1501(a)(2)(G), 10106(a). Furthermore, Congress found that the “minimum essential coverage” requirement, in addition to the Act’s other provisions, would lower the cost of health insurance by reducing “adverse selection and broadening] the health insurance risk pool to include healthy individuals.” Id. Congress also determined that the minimum essential coverage provision “is essential to creating effective health insurance markets in which improved health insurance products that are guaranteed issue and do not exclude coverage of pre-existing conditions can be sold.” Id. It has been projected that by 2019 thirty-two million “fewer people will be uninsured because of the legislation.” Douglas W. Elmendorf, Director, Cong. Budget Office (“CBO”), Economic Effects of the March Health Legislation, 6 (Oct. 22, 2010).

MOTION TO DISMISS STANDARD

The adequacy of pleadings is governed by Fed.R.Civ.P. 8(a)(2), which requires that a complaint allege “a short and plain statement of the claim showing that the pleader is entitled to relief.” Additionally, an adequate complaint “requires more than labels and conclusions, and a formulaic recitation of the elements of a cause of action will not do. Factual allegations must be enough to raise a right to relief above the speculative level .... ” Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 555, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007) (internal citations omitted); see also Phillips v. County of Allegheny, 515 F.3d 224, 232 (3d Cir.2008) (stating that Rule 8 “requires a ‘showing,’ rather than a blanket assertion, of an entitlement to relief.”).

A Motion to Dismiss under Fed.R.Civ.P. 12(b)(1) “may be treated as either a facial or factual challenge to the court’s subject matter jurisdiction.” Gould Elecs., Inc. v. United States, 220 F.3d 169, 176 (3d Cir. *505 2000). If reviewing a “ ‘facial attack,’ which is based on the legal sufficiency of the claim, the Court ‘must only consider the allegations of the complaint and documents referenced therein ... in the light most favorable to the plaintiff.’ ” Brown v. U.S. Steel Corp., 2010 WL 4388075, at *2, 2010 U.S. Dist. LEXIS 115503, at *5 (W.D.Pa. Oct. 29, 2010) (quoting Gould Elecs. Inc., 220 F.3d at 176); see also Pension Benefit Guar. Corp. v. White Consol. Indus., 998 F.2d 1192, 1196 (3d Cir.1993). On the other hand, if the Court is considering a “ ‘factual attack,’ where a challenge is based on the sufficiency of jurisdictional fact, ‘the Court is free to weigh the evidence and satisfy itself whether it has power to hear the case.’ ” Brown, 2010 WL 4388075, at *2, 2010 U.S. Dist. LEXIS 115503, at *6 (quoting Carpet Grp. Int’l v. Oriental Rug Imps., 227 F.3d 62

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Bluebook (online)
757 F. Supp. 2d 502, 2010 U.S. Dist. LEXIS 129445, 2010 WL 5060597, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-jersey-physicians-inc-v-obama-njd-2010.