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Monday, January 31, 2011

US judge deals new blow to Obama health reform

AFP, WASHINGTON: A second US federal judge declared President Barack
Obama's health care law unconstitutional, sparking a fierce new
showdown with Republicans who vow to repeal the historic reform act.

The Obama administration immediately pledged to appeal and branded the
ruling by a Florida judge as an "outlier" from the judicial
mainstream, warning that health care costs would soar if it was
allowed to stand.

But Republicans crowed that the ruling was one step closer to the
outright repeal of a law that has been a Democratic dream for decades
but that conservatives say will explode the deficit and kill jobs.

US District Judge Roger Vinson said a key provision of the law known
as the "individual mandate" exceeds Congress's regulatory powers by
requiring Americans to either purchase health insurance by 2014 or pay
a fine.

"Because the individual mandate is unconstitutional and not severable,
the entire act must be declared void," Vinson said in his ruling, the
latest step of a twisting legal battle likely to end up in the US
Supreme Court.

"This has been a difficult decision to reach, and I am aware that it
will have indeterminable implications."

Vinson agreed with governors and attorneys general from 26 US states
that consider the provision unconstitutional.

But the Justice Department quickly said it would appeal Vinson's
ruling, and consider all options -- including a stay of the verdict
pending appeal -- to ensure the health care law can go into force.

The health care law, which passed last year, is the most sweeping
piece of social legislation since the 1960s, reins in insurance
company abuses and brings America as close as it has ever been to
universal coverage.

"Today's ruling... is a plain case of judicial overreaching,"
Stephanie Cutter, a senior political assistant to Obama, said in a
White House blog post.

"The judge's decision puts all of the new benefits, cost savings and
patient protections that were included in the law at risk."

In December, Judge Henry Hudson of the Eastern District Court in
Richmond, Virginia, found that the mandate usurps federal authority
and violates the Commerce Clause, a key component of the US
Constitution.

Some 12 federal judges have already struck down challenges to the law,
and two have upheld the legislation.

Republicans pounced on the latest ruling, seeking fuel for their
campaign to overturn the reform -- a vain hope for now, as Obama could
wield a presidential veto in the unlikely event a repeal law cleared
Congress.

Senate Republican Minority Leader Mitch McConnell said the court's
decision proved the health care law was a "massive overreach" and
exceeded congressional authority.

"We should repeal this health spending bill and replace it with
commonsense reforms that will actually lower costs, prevent
unsustainable entitlement promises and make it easier for employers to
start hiring again," he added.

Republican National Committee Chairman Reince Priebus called the
ruling a "major victory for the American people and job-creators all
across the country."

Obama's Republican foes have claimed the health care law includes
rationing for end of life care, would add to the massive deficit and
will kill jobs as employers struggle to pay for what they say will be
rising premiums.

The new Republican-led House of Representatives has already voted to
repeal the health reform law, which reins in insurance firms and seeks
to offer near-universal care to Americans for the first time.

Obama said in his State of the Union address earlier this month that
he was "eager" to work with Republicans to make small improvements in
the law but was not willing to consider a complete repeal.

Opinion polls have found the US public deeply divided over the health
law, with roughly one in five in favor of outright repeal and the rest
divided between strengthening the law and rolling back parts of it.

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