Little-noticed amid the commentary on the Supreme Courtโ€™s health care decision is the decisionโ€™s blow to congressional efforts to federalize medical malpractice lawโ€”a potential element of the Republican plan to โ€œreplace Obamacare.โ€

Medical malpractice cases, like most areas of civil justice, traditionally are judged by state courts under state law rather than by the national government. This is because, as American Founders such as Alexander Hamilton and John Marshall explained, the Constitution reserves most such matters to state control.

Yet the current U.S. House of Representativesโ€”led by some who otherwise assail federal overreachingโ€”have twice passedย H.R. 5, a bill that would largely transfer control over medical malpractice lawsuits to the federal government. Fortunately, the measure has not passed the Senate. It is, however, being touted as part of the GOP plan to โ€œreplaceโ€ Obamacare.

Under Title 1 of H.R. 5 (the so-called HEALTH ACT), Congress would assume expansive authority over state court procedures. The bill requires state judges and juries to adopt federal standards of proof, federal damage rules, federally-mandated standards of guilt, federal statutes of limitations, and a federal schedule for attorneysโ€™ fees that overrides agreements between attorney and client. H.R. 5 also dictates that certain legal information be withheld from juries. A portion of the bill with the Orwellian title of โ€œState Flexibility and Protection of Statesโ€™ Rightsโ€ provides that the measure overrides state law, with only minimal concessions.

Advocates of H.R. 5 claim the Constitution gives Congress authority to adopt the measure under Congressโ€™s Interstate Commerce Power. This always has been a dubious argument, but has become more dubious in light of comments and holdings in the Supreme Courtโ€™s health care case.

The Interstate Commerce Power stems from two of the Constitutionโ€™s grants of authority to Congress. The first, called the Commerce Clause, gives Congress power to regulate interstate commerce. The second, called the Necessary and Proper Clause, grants authority to make laws โ€œnecessary and properโ€ for carrying out other powers, including the power to regulate interstate commerce. A close reading of modern Supreme Court cases shows that congressional authority to govern trade and insurance derives from the Commerce Clause, but that most of its other economic power (including regulating health care) comes from the Necessary and Proper Clause.

But as the Supreme Court has emphasized repeatedly, there are limits to Congressโ€™s authority. Chief Justice Robertsโ€™ health care opinion strongly suggests that the Necessary and Proper Clause is simply not broad enough to include the kind of control over state courts that H.R. 5 would impose.

In his opinion for the Court, Roberts upheld as a tax the individual insurance mandate. But he also agreed with a majority of the court that the mandate could not be justified under the Commerce Power. One of his key observations was that (in accordance with the Foundersโ€™ understanding) the Necessary and Proper Clause does not grant power by itself, but merely clarifies how the Constitution should be read. Roberts further explained that the Necessary and Proper Clause does not permit Congress to exercise of any โ€œโ€˜great substantive and independent power[s]โ€™ beyond those specifically enumerated. . . .โ€

The Original Constitution

Get the Book Today!

Among the โ€œgreat substantive and independent powersโ€ denied to the federal government is control over the branches of state government. Roberts wrote that laws that โ€œundermine the structure of government established by the Constitution . . . are not โ€˜consist[ent] with the letter and spirit of the constitutionโ€™โ€ and โ€œare not โ€˜proper [means] for carrying into Executionโ€™ Congressโ€™s enumerated powers.โ€

In the Medicaid portion of Robertsโ€™ opinionโ€”in which he spoke for a seven-justice majorityโ€”he also emphasized that federal laws are void if they โ€œundermine the status of the States as independent sovereigns in our federal system.โ€ That principle, he said, has led the Supreme Court โ€œto strike down federal legislation that commandeers a Stateโ€™s legislative or administrative apparatus for federal purposes.โ€ Among the cases he cited in this portion of his opinion was Alden v. Maine (1999), a prominent decision in which the Supreme Court voided a federal law ordering state courts to take jurisdiction over certain kinds of cases.

It seems clear that the Supreme Court will not tolerate efforts by Congress to dictate rules and procedures to state courts. In light of this new information, the sponsors of H.R. 5 should honor their oath to support the Constitution by promptly withdrawing the bill.

Rob Natelson
Latest posts by Rob Natelson (see all)