Supreme Court upholds the ACA for the third time

On Thursday, June 17th , the Supreme Court of the United States upheld the Patient Protection and Affordable Care Act (ACA) in a 7-2 ruling. In California v. Texas, the original plaintiffs argued that the reduction of the individual mandate penalty to $0.00 rendered the ACA an invalid exercise of Congress’ taxation powers. This was significant because back in 2012, the Court upheld the ACA specifically on the basis that Congress was permitted to create the individual mandate according to its taxing powers. Thus, Texas’ coalition argued that the law in its entirety should be deemed unconstitutional. However, the Court did not consider the merits of these arguments, instead ruling that the individual plaintiffs in the case, as well as the eighteen states led by Texas, did not have the legal standing to challenge the law.

In the Court’s majority opinion, Justice Breyer wrote that the plaintiffs “have not shown an injury ‘fairly traceable’ to the ‘allegedly unlawful conduct’” identified in their suit. In other words, the elimination of the individual mandate did not hurt anyone—and, since no one got hurt, no one has the right to sue.

While it is always possible that additional legal challenges could come with time, the Supreme Court’s third ruling on the ACA preserves all of the law’s many federal health care requirements and protections for the foreseeable future.

If you have any questions or thoughts feel free to reach out at any time.

Sincerely,

Mike Hill

Recent & Related

How Your Staff Can Save on Childcare, Health Services

How Your Staff Can Save on Childcare, Health Services

One of the most underused employee benefits available is the "cafeteria" plan ― which can benefit both the employer and the employee. These plans allow workers to withhold a portion of their pre-tax salary to cover certain medical or childcare expenses. The benefits...

read more
Many Employees Choosing the Wrong Health Plans

Many Employees Choosing the Wrong Health Plans

A new study  has found that many people in employer-sponsored health plans are enrolling in plans that are costing them more than they ought to be paying. Many employees choose pricey plans with low deductibles, which force them to spend more up front on premiums...

read more
More Employers Add Narrow Networks to Offerings

More Employers Add Narrow Networks to Offerings

More employers are including narrow provider network insurance plans among their plan offerings to their employees to give them a lower-cost premium option. Narrow provider networks limit the number of covered providers included in health insurance plans. While these...

read more