District Court Strikes Down the ACA, But Law Remains in Place Pending Appeal

 In ACA

Last week a federal judge in Texas ruled the Affordable Care Act (ACA) unconstitutional.

You may be wondering…What does this mean?

First and foremost, this ruling has no immediate impact on the health insurance landscape. All provisions of the ACA, including the online marketplace, premium subsidies, employer reporting and IRS enforcement – remain the law of the land.

The most likely next steps seem to lead to 2 possible scenarios:

Scenario #1: The court of appeals will agree with the Texas ruling – sending the case eventually to the Supreme Court. The timeline on this scenario would likely go through the end of 2019 – possibly into 2020. Notably, the 5 Supreme Court judges who have previously ruled in favor of the ACA remain on the court (there are a total of 9 judges on the Supreme Court).

Scenario #2: The court of appeals will disagree with the Texas ruling – and reverse the decision – ruling the ACA is in-fact constitutional. This is likely to occur in Spring 2019. Under this scenario, it is unlikely the case would get to the Supreme Court.

As the ACA has faced many challenges over the past years, we continue to recommend staying the course. This includes adhering to all provisions of the health care law, including; employers offering minimum value & affordable health coverage, and completing IRS reporting (Forms 1094 / 1095-C) in a timely manner.

Our credentialed team is always available if you have any questions.

Safe New Year wishes to all!

Recent Posts

Start typing and press Enter to search