Peterson v. U.S.

774 F.Supp.2d 418

2011 DNH 052

Harold PETERSON

v.UNITED STATES of America et al.

Civil No. 10–cv–170–JL.

United States District Court, D. New Hampshire.

March 30, 2011.

Harold Peterson, Nashua, NH, pro se.Eric R. Womack, Washington, DC, T. David Plourde, U.S. Attorney's Office, Concord, NH, for United States of America et al.

MEMORANDUM ORDER

JOSEPH N. LAPLANTE, District Judge.

The issue in this case is whether a Medicare recipient has standing to challenge the constitutionality of the Patient Protection and Affordable Care Act (the “Act”),¹ a federal health care bill enacted last year. Plaintiff Harold Peterson, proceeding pro se, brought suit against the United States of America and other federal defendants, alleging that the Act violates various provisions of the United States Constitution: the Commerce Clause, ² the Takings Clause,³ the Presentment Clause,⁴ the Presidential Oath of Office Clause,⁵ and the Ninth and Tenth Amendments.⁶ He challenges, in particular, the Act's mandate that citizens purchase health insurance coverage, as well as the manner in which the Act was passed.

The defendants have moved to dismiss the case for lack of subject-matter jurisdiction, see Fed.R.Civ.P. 12(b)(1), arguing that Peterson has no standing to challenge the Act because his Medicare coverage automatically satisfies the Act's health insurance mandate and because his other allegations of injury are too speculative. After hearing oral argument, this court grants the motion. While the Act, and particularly its health insurance mandate, may raise interesting constitutional issues, compare Mead v. Holder, No. 10–950, 766 F.Supp.2d 16, 2011 WL 611139, 2011 U.S. Dist. LEXIS 18592 (D.D.C. Feb. 22, 2011) (upholding the Act against constitutional challenge), Liberty Univ., Inc. v. Geithner, 753 F.Supp.2d 611 (W.D.Va.2010) (same), and Thomas More Law Ctr. v. Obama, 720 F.Supp.2d 882 (E.D.Mich.2010) (same), with Florida v. U.S. Dep't of Health & Human Servs., 10–91, 780 F.Supp.2d 1256, 2011 WL 285683, 2011 U.S. Dist. LEXIS 8822 (N.D.Fla. Jan. 31, 2011) (declaring the Act unconstitutional), and Virginia ex rel. Cuccinelli v. Sebelius, 728 F.Supp.2d 768 (E.D.Va.2010) (declaring the mandate unconstitutional), Peterson has no standing to litigate them.

I. Applicable legal standard

“Federal courts are courts of limited jurisdiction. They possess only that power authorized by Constitution and statute.” United States v. Coloian, 480 F.3d 47, 50 (1st Cir.2007) (quoting Kokkonen v. Guardian Life Ins. Co. of Am., 511 U.S. 375, 377, 114 S.Ct. 1673, 128 L.Ed.2d 391 (1994)) (formatting altered). “It is to be presumed that a cause [of action] lies outside this limited jurisdiction,” and the burden lies with the plaintiff, as the party invoking the court's jurisdiction, to establish that it extends to his claims. Kokkonen, 511 U.S. at 377, 114 S.Ct. 1673; see also Pejepscot Indus. Park v. Me. Cent. R.R., 215 F.3d 195, 200 (1st Cir.2000). “Without jurisdiction the court cannot proceed at all in any cause. Jurisdiction is power to declare the law, and when it ceases to exist, the only function remaining to the court is that of announcing the fact and dismissing the cause.” Steel Co. v. Citizens for a Better Env't, 523 U.S. 83, 94, 118 S.Ct. 1003, 140 L.Ed.2d 210 (1998).

In evaluating the defendants' motion to dismiss for lack of jurisdiction under Rule 12(b)(1), this court must “accept as true all material allegations of the complaint, and ... construe the complaint in favor of the complaining party.” Warth v. Seldin, 422 U.S. 490, 501, 95 S.Ct. 2197, 45 L.Ed.2d 343 (1975). Moreover, because Peterson is proceeding pro se,⁷ his complaint must be construed liberally, “held to less stringent standards than formal pleadings drafted by lawyers.” Estelle v. Gamble, 429 U.S. 97, 106, 97 S.Ct. 285, 50 L.Ed.2d 251 (1976). But these standards do not require the court to “credit bald assertions, subjective characterizations, ... problematic suppositions,” or “empirically unverifiable conclusions, not logically compelled, or at least supported, by the stated facts” in the complaint. Sea Shore Corp. v. Sullivan, 158 F.3d 51, 54 (1st Cir.1998) (formatting altered).

II. Background

The Patient Protection and Affordable Care Act, passed by Congress and signed into law by the President in March 2010, is a federal statute designed to reform the American health care system. The Act mandates that every citizen, other than those falling within specified exceptions, maintain a minimum level of health care insurance coverage beginning in 2014 (or else pay a penalty to be assessed and collected as a tax). See 26 U.S.C. § 5000A. ⁸ Once that mandate becomes effective, health insurance plans will be prohibited from excluding coverage for pre-existing medical conditions. See 42 U.S.C. § 300gg–3. The Act provides for subsidies that will limit the costs of maintaining minimum coverage for citizens making less than 400 percent of the poverty level (currently about $88,000 for a family of four), see 26 U.S.C. § 36B, and conversely imposes a tax on high-cost health insurance plans, see id. § 4980I, known colloquially as “Cadillac” plans.

The Act also makes a number of changes to Medicare, a federal program that provides health care coverage for most citizens 65 years of age or older. For example, the Act increases the Medicare prescription drug benefit, imposes additional Medicare taxes on high-wage earners and investment income, constrains the rates that Medicare pays to certain types of health care providers, and brings the subsidies for Medicare Advantage plans (private plans through which beneficiaries may elect to receive Medicare benefits) into line with traditional Medicare payments. See Patricia A. Davis et al., Cong. Research Serv., R41196, Medicare Provisions in the Patient Protection and Affordable Care Act: Summary and Timeline (Nov. 3, 2010). The Act expressly provides that none of its provisions “shall result in a reduction of guaranteed benefits” to Medicare participants. Pub.L. No. 111–148, supra, §§ 3601 and 3602.

Peterson, a citizen of New Hampshire, is self-employed and currently receives health care coverage through Medicare. He also purchases supplemental private health insurance from Anthem Blue Cross and Blue Shield. Anthem recently “advised [him] of an increase in his premiums beginning at the expiration of his present [insurance] term because of the Act.” According to media reports, Anthem is one of many insurance companies that have attributed premium increases to the Act. See Janet Adamy, Health Outlays Still Seen Rising, Wall St. J., Sept. 8, 2010, at A7. Based on “information broadcast and published by various news media,” Peterson also fears that he “may suffer a loss of Medicare benefits in subsequent years” and “increased costs” as a result of the Act, which by “reducing the Medicare budget ... could endanger the healthcare coverage for all members of Medicare.”

Peterson brought this pro se lawsuit in May 2010 to challenge the constitutionality of the Act, seeking both declaratory and injunctive relief. He named an array of defendants: the United States of America, the United States Senate and House of Representatives, the President, and the Secretary of Health and Human Services. His complaint alleges, in particular, that the Act's mandate that citizens purchase health insurance coverage violates the Takings Clause (because it takes “private property ... for public use, without just compensation,” U.S. Const. amend. V), the Commerce Clause (because it does not “regulate Commerce ... among the several States,” U.S. Const. art. I, § 8, cl. 3, but rather decisions not to engage in commerce by purchasing insurance), and the Ninth and Tenth Amendments (because it falls outside of Congress's enumerated powers).

Peterson also claims that the Act is unconstitutional because of the manner in which it was passed. He alleges, in particular, that the Act violates the Presentment Clause, see U.S. Const. art. I, § 7, cl. 2, because the version passed by the Senate differs from the one passed by the House (due to the reconciliation bill cited in note 1, supra ), and because the Act covers subjects other than health care, such as student loans. Relatedly, he alleges that the President violated his oath of office, see U.S. Const. art. II, § 1, cl. 8, by knowingly signing an unconstitutional bill.⁹

III. Analysis

The Constitution “limits the jurisdiction of federal courts to ‘Cases' and ‘Controversies.’ ” Lujan v. Defenders of Wildlife, 504 U.S. 555, 559, 112 S.Ct. 2130, 119 L.Ed.2d 351 (1992) (quoting U.S. Const. art. III, § 2, cl. 1). “To satisfy the Constitution's ‘case or controversy’ requirement, a party seeking relief in federal court must show that he has suffered an actual injury, which is fairly traceable to the defendant's conduct and redressable by a favorable judicial decision.” Coggeshall v. Mass. Bd. of Registration of Psychologists, 604 F.3d 658, 666 (1st Cir.2010) (citing Lujan, 504 U.S. at 560–61, 112 S.Ct. 2130). That is commonly known as the doctrine of “standing.” Peterson argues that “standing is a fiction created by the courts” and that he need not satisfy any such requirement. But the Supreme Court has called the standing requirement “essential and unchanging,” Lujan, 504 U.S. at 560, 112 S.Ct. 2130, and this court must follow Supreme Court precedent. See, e.g., Evans v. Thompson, 518 F.3d 1, 9 (1st Cir.2008) (“Many limitations on the ability of federal courts to grant relief originate ... from binding Supreme Court precedent.”).

“Standing is not dispensed in gross. Rather, a plaintiff must demonstrate standing for each claim he seeks to press and for each form of relief that is sought.” Davis v. Fed. Election Comm'n, 554 U.S. 724, 734, 128 S.Ct. 2759, 171 L.Ed.2d 737 (2008) (quotations omitted). In this case, the defendants argue that Peterson lacks standing to bring his claims challenging the Act's health insurance...