Liberty University, based in Lynchburg, Virginia, had challenged both the individual mandate, which required all people to obtain insurance by 2014 or pay a penalty, and a separate mandate requiring large employers to provide coverage for workers.
In September 2011, a federal appeals court in Richmond, Virginia, said it lacked jurisdiction because challenging the mandates would have violated the federal Anti-Injunction Act's ban on lawsuits seeking to halt collection of a tax.
The Supreme Court did not include Liberty's appeal among the cases it reviewed earlier this year, which led to its upholding of the individual mandate by a 5-4 vote. A day after it ruled, the court formally declined to review Liberty's appeal.
But the university asked for a rehearing, saying that because the 4th Circuit was wrong to decide it lacked jurisdiction, its decision should be thrown out, and a new lawsuit should proceed. The Supreme Court's order on Monday allows that to happen.
(Reporting by Jonathan Stempel; Editing by Howard Goller and Bill Trott)
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