Key provision of new healthcare law declared unconstitutional

Type:  Tax Tips

First, a federal district judge in Virginia ruled that the minimum essential coverage provision of the Patient Protection and Affordable Care Act is unconstitutional (Virginia v. Kathleen Sebelius, Dec. 13, 2010). Now, a federal district judge in Florida has declared the entire healthcare law unconstitutional for the same reason (Florida v. Department of Health and Human Services, Jan. 31, 2011).

The minimum essential coverage provision requires most U.S. citizens to purchase a minimum level of health insurance coverage beginning in 2014. A penalty for failure to comply is assessed as part of the individual's federal income tax return.

Since the minimum essential coverage provision does not take effect for a few years, there should be plenty of time for government's appeal to proceed to the United States Supreme Court.