On Dec. 18, 2019, a federal appeals court ruled in Texas v. Azar that the Affordable Care Act’s (ACA) individual mandate is unconstitutional due to the elimination of the individual mandate penalty in 2019. The appeals court remanded the case to the lower court to determine whether the rest of the ACA can remain in place without the individual mandate.
This lawsuit was filed in 2018 by 18 states as a result of the 2017 tax reform law that eliminates the individual mandate penalty. In 2012, the U.S. Supreme Court upheld the ACA on the basis that the individual mandate is a valid tax. With the penalty’s elimination, the appeals court in this case determined that the individual mandate is no longer valid under the U.S. Constitution.
December 18, 2019
An appeals court invalidated the individual mandate due to the elimination of the penalty
January 1, 2019
Individuals are no longer penalized under the ACA for failing to obtain acceptable health insurance coverage
The lower court is now tasked with determining whether the rest of the ACA may be severed from the individual mandate provision. However, this ruling is expected to be appealed to the Supreme Court. As a result, a final decision is not expected to be made until that time. In addition, it is likely that any ruling eliminating the ACA will be stayed pending appeal.
Contact Insurance Solutions at 866-335-8602 for more information or for your coverage needs.
@2020 Zywave, Inc. All Rights Reserved.