Nick Coons v. Jacob Lew

CourtCourt of Appeals for the Ninth Circuit
DecidedAugust 7, 2014
Docket13-15324
StatusPublished

This text of Nick Coons v. Jacob Lew (Nick Coons v. Jacob Lew) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nick Coons v. Jacob Lew, (9th Cir. 2014).

Opinion

FOR PUBLICATION

UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT

NICK COONS; and ERIC N. NOVACK, No. 13-15324 M.D., Plaintiffs-Appellants, D.C. No. 2:10-cv-01714- v. GMS

JACOB L. LEW, in his official capacity as Secretary of the United OPINION States Department of the Treasury; KATHLEEN SEBELIUS, in her official capacity as Secretary of the United States Department of Health and Human Services; ERIC H. HOLDER, JR., Attorney General, in his official capacity as Attorney General of the United States; and BARACK HUSSEIN OBAMA, in his official capacity as President of the United States, Defendants-Appellees.

Appeal from the United States District Court for the District of Arizona G. Murray Snow, District Judge, Presiding

Argued and Submitted June 10, 2014—San Francisco, California

Filed August 7, 2014 2 COONS V. LEW

Before: Mary M. Schroeder, Susan P. Graber, and Jay S. Bybee, Circuit Judges.

Opinion by Judge Graber

SUMMARY*

Patient Protection and Affordable Care Act

The panel affirmed in part and vacated in part the district court’s judgment in favor of federal officials in a case brought by two Arizona citizens alleging a facial constitutional challenge to two provisions of the Patient Protection and Affordable Care Act, and seeking a declaration concerning the Arizona Health Care Freedom Act.

The panel affirmed the district court’s holding that the Affordable Care Act’s individual mandate, which requires that individuals maintain a minimum level of health insurance coverage or pay a penalty, did not violate a plaintiff’s substantive due process right to medical autonomy. The panel also affirmed the dismissal, for lack of ripeness, of a plaintiff’s challenge to the individual mandate for a violation of his substantive due process rights to informational privacy. The panel also affirmed the district court’s holding that the Affordable Care Act preempted the Arizona Health Care Freedom Act, which amended the Arizona constitution to make it lawful to abstain from purchasing health insurance without paying any penalty. Finally, with respect to a

* This summary constitutes no part of the opinion of the court. It has been prepared by court staff for the convenience of the reader. COONS V. LEW 3

plaintiff’s challenge to the Independent Payment Advisory Board, which is a new advisory board charged with issuing budget recommendations for the Medicare program in the event that the program exceeded growth projections, the panel vacated the district court’s decision on the merits and remanded with instructions to dismiss for lack of jurisdiction.

COUNSEL

Christina Sandefur (argued), Clint Bolick, Kurt Altman, and Nicholas C. Dranias, Goldwater Institute, Phoenix, Arizona, for Plaintiffs-Appellants.

Jeffrey E. Sandberg (argued), Dana Kaersvang, and Alisa B. Klein, Attorneys, John S. Leonardo, United States Attorney, and Stuart F. Delery, Acting Assistant Attorney General, Civil Division, United States Department of Justice, Washington, D.C., for Defendants-Appellees.

Timothy Sandefur, Pacific Legal Foundation, Sacramento, California, for Amici Curiae.

OPINION

GRABER, Circuit Judge:

Plaintiffs Nick Coons and Eric N. Novack brought a facial constitutional challenge to two provisions of the Patient Protection and Affordable Care Act, Pub. L. No. 111-148, 124 Stat. 119 (2010), as amended by Health Care and Education Reconciliation Act of 2010, Pub. L. No. 111-152, 124 Stat. 1029 (“Affordable Care Act”): the individual 4 COONS V. LEW

mandate, which requires that individuals maintain a minimum level of health insurance coverage or pay a penalty; and the establishment of the Independent Payment Advisory Board (“IPAB”), a new advisory board charged with issuing budget recommendations for the Medicare program in the event that the program exceeds growth projections. Plaintiffs also sought a declaration that the Arizona Health Care Freedom Act (“Arizona Act”), which amends the Arizona constitution to make it lawful to abstain from purchasing health insurance without paying any penalty, is not preempted by the Affordable Care Act. After the Supreme Court issued National Federation of Independent Business v. Sebelius, 132 S. Ct. 2566 (2012), the district court dismissed Plaintiffs’ claims and entered judgment for Defendants Timothy Geithner, Kathleen Sebelius, Eric Holder, Jr., and Barack Hussein Obama, in their official capacities. Reviewing de novo, Stout v. FreeScore, LLC, 743 F.3d 680, 684 (9th Cir. 2014); Demers v. Austin, 746 F.3d 402, 409 (9th Cir. 2014), we affirm in part, and in part vacate and remand with instructions to dismiss for lack of jurisdiction.

BACKGROUND

In March 2010, Congress passed and the President signed into law the Affordable Care Act. The Act establishes a comprehensive regulatory system intended to increase the number of Americans covered by medical insurance and to decrease the cost of medical care. Two of its provisions are at issue in this appeal: the provision commonly known as the individual mandate, 26 U.S.C. § 5000A; and the provision establishing IPAB, 42 U.S.C. § 1395kkk.

The individual mandate is codified in Title 26 of the Internal Revenue Code. 26 U.S.C. § 5000A. The mandate COONS V. LEW 5

requires all “applicable individuals,” id. § 5000A(d), and their dependents to maintain “minimum essential coverage,” id. § 5000A(f), for every month beginning in January 2014, id. § 5000A(a). If an individual fails to meet that requirement and does not qualify for an exemption, id. § 5000A(e), the individual must pay a penalty, termed the “shared responsibility payment,” with his or her annual income tax return, id. § 5000A(b).

IPAB is a new 15-member administrative board that will monitor the growth of Medicare spending and, if actual growth exceeds projected growth, will develop and submit recommendations to reduce the growth rate to the “savings target” set by the Chief Actuary of the Centers for Medicare & Medicaid Services. 42 U.S.C. § 1395kkk. The requirement that IPAB issue recommendations for a given year is triggered only if the Chief Actuary determines that actual growth will exceed projected growth in a particular year. Id. § 1395kkk(b). If the Chief Actuary makes that determination, then IPAB is required to recommend measures to reduce growth that the Secretary of Health and Human Services (“Secretary”) must implement in the absence of an affirmative veto by Congress.1 Id. If IPAB fails to make the required recommendations for a given year, for lack of membership or otherwise, its duties fall to the Secretary. Id. § 1395kkk(c)(5). Once IPAB completes its recommendations, it must submit them to Congress and the President. Id. § 1395kkk(c)(3). If instead the Secretary completes the recommendations, the Secretary must submit them to the President, who must in turn submit the proposal to Congress within two days. Id. § 1395kkk(c)(4)–(5). The

1 IPAB also has the authority, at its discretion, to make non-binding, advisory proposals to Congress. 42 U.S.C. § 1395kkk(c). 6 COONS V. LEW

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