The 5th Circuit Court of Appeals in New Orleans
heard arguments in Texas v. United States on July 9th. This lawsuit is seeking to overturn the
Affordable Care Act (ACA). Along with the Trump administration support, this
suit was brought on by twenty Republican states attorneys. At this time a coalition of twenty-one
Democratic attorneys general and the House of Representatives are defending the
law. The case was heard by a three-judge
panel. A ruling in December 2018 by
Judge Reed O’Connor stated that when Congress eliminated the “individual
mandate” tax penalty on people without ACA compliant health coverage, it
removed the constitutional premise of the entire law. Many of those who are appealing the ruling
have said that it was based on faulty legal analysis and that Judge O’Connor
had overstepped his judicial authority.
If the lower court ruling is upheld we are likely to see this land
before the U.S. Supreme Court. If found
unconstitutional there would be consequences for employers who sponsor health
care benefits and the millions of people who receive ACA-regulated
coverage. If this goes to appeals court
the Trump administration has already said it will continue to enforce the provisions
of the law until a final ruling is issued.
Depending on what happens at the appeals court level, this
law could find itself in front of the U.S. Supreme Court in the middle of next
year’s presidential election.
If you have any questions about the Affordable Care Act and
how it might affect your company please feel free to reach out to us at (610)-296-8550 or info@convergehrsolutions.com.
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