Benzinga - by Vandana Singh, Benzinga Editor.
The Biden administration is working to preserve a crucial federal mandate compelling health insurers to cover preventive care services, including HIV-preventing medication and cancer screenings, without additional costs to patients.
This mandate is integral to the 2010 Affordable Care Act (ACA). But it faces challenges from a group of businesses led by Texas-based Christian wellness center operator Braidwood Management, which vehemently opposes mandatory coverage for HIV pre-exposure prophylaxis (PrEP).
Scheduled before a three-judge panel of the New Orleans-based 5th U.S. Circuit Court of Appeals, the arguments revolve around the lawsuit brought by Braidwood, and others centered on the belief that providing coverage for PrEP infringes upon their religious convictions by ostensibly promoting homosexuality and drug use.
PrEP drugs, crucial for preventing HIV infection, are developed by pharmaceutical giants like Gilead Sciences Inc (NASDAQ:GILD) and ViiV Healthcare — a joint venture of GSK Plc (NYSE:GSK), Pfizer Inc (NYSE:PFE), and Shionogi.
This legal dispute traces back to U.S. District Judge Reed O’Connor’s decision in March 2023, where he blocked the mandate and raised concerns about the task force’s authority in selecting covered services.
O’Connor argued that this power extended beyond what the U.S. Constitution allowed for officials not appointed by the president and confirmed by the Senate.
While O’Connor’s ruling is temporarily on hold due to an agreement between Braidwood and the Biden administration during the appeal process, if implemented, it could allow insurers to impose co-pays and deductibles for preventive services.
However, O’Connor’s ruling notably excludes services recommended by the task force before the ACA’s enactment in 2010, Reuters noted.
The three-judge panel overseeing this appeal includes Circuit Judges Don Willett and Cory Wilson, appointed by Republican former President Donald Trump, and Circuit Judge Irma Carrillo Ramirez, appointed by current Democratic President Joe Biden.
O’Connor’s previous involvement in a 2018 case, where he struck down the entire Obamacare, underscores the significance of this ongoing legal battle, which remains a focal point in shaping the future of healthcare coverage in the United States.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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