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ACA Remains in Force After Court Rules Unconstitutional

A federal district court in Texas has ruled the entirety of the Affordable Care Act (ACA) unconstitutional.

In his ruling, Judge Reed C. O'Connor of the Federal District Court in Fort Worth sided with a group of 18 Republican state attorneys general and two GOP governors who brought the case. O'Connor held that the tax bill passed by Congress in December 2017, which zeroed out the individual mandate penalty beginning in 2019, effectively rendered the entire health law unconstitutional.

The decision is expected to be swiftly appealed and it is likely the case will become the third time the Supreme Court decides a constitutional question related to the ACA. In addition to upholding the law in 2012, the Supreme Court rejected another challenge to the law in 2015.

While the future of the ACA is unclear at this time, this case does not immediately affect any current ACA rules or regulations. Pending further legal developments, all existing ACA requirements remain in effect, including penalties for noncompliance.

Marshall & Sterling will provide you with additional information as it becomes available. Please do not hesitate to reach out to our Group Benefits team with any compliance questions, comments, or concerns.


Disclaimer: The information contained in this message is for general informational purposes only and does not constitute legal advice.