As reported in DOTmed News, (See DM 12137, 12143) several states are challenging the newly enacted Patient Protection and Affordable Care Act (PPAC), arguing that the health care reform law is unconstitutional. Florida Attorney General Bill McCollum initiated the PPAC challenge along with the AGs from Pennsylvania, Alabama, Colorado, Idaho, Louisiana, Michigan, Nebraska, Texas, South Carolina, South Dakota, Utah and Washington. The lawsuit claims the mandate for individuals to obtain insurance or pay a penalty is unconstitutional. The suit also argued that the PPAC imposes an unprecedented encroachment on the sovereignty of the states through the measures and costs of implementing reform. As previously reported, Indiana AG Greg Zoeller is joining the litigation. Virginia, through AG Ken Cuccinelli, has filed a separate lawsuit.

However, other states are supportive of the new act and ready to implement reform. A sketch of current state action is below, with some state governors and attorneys general at odds with each other regarding whether to challenge the PPAC.

Favoring the Reform Act

Michigan Governor Jennifer M. Granholm is not only bucking the critical trend toward the PPAC, she's also taking a stand in contravention to Michigan Attorney General Michael Cox, who had joined the multi-state litigation. Governor Granholm's office sent a letter to Cox in which she states that Cox's position is contrary to her administration's, and that the AG's statutory authority to intervene in litigation was superseded by the superior constitutional authority of the Governor's office.

Governor Granholm announced last week that she is establishing a Health Insurance Reform Coordinating Council within the state government "to identify steps that must be taken to ensure that Michigan citizens reap the full benefits" outlined in the act. Her executive order creates an Office of Health Insurance Consumer Assistance within the Office of Financial and Insurance Regulation, including an ombudsman to assist in information regarding insurance, compliance and complaints.

"Health care reform is designed to give Michigan families and businesses more control over their own health care, provide them with the security and stability that come with health care coverage, and reduce overall health care costs," Gov. Granholm said. "After waging a long and hard fight for this historic legislation, we want to ensure that we are doing everything we can to help citizens benefit under the new law."

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