SCOTUS Skepticism Toward ACA Suit Gives Insurers a Boost

Although a constitutional challenge to the Affordable Care Act (ACA) has been winding its way through the court system for more than two years — fueling ongoing concerns about the law’s future — the Supreme Court during a Nov. 10 hearing appeared highly skeptical that the case has much merit. That’s welcome news for the health insurance industry, as analysts have long pointed out that the sector is eager to move past the uncertainty that the lawsuit has created.

The suit in question, now known as California v. Texas, was first brought by a Texas-led coalition of conservative states in 2018. It argues that the ACA’s individual mandate — which compels people to purchase health insurance — is unconstitutional because Congress removed the mandate’s tax penalty via a budget bill in 2017. The states’ argument relies upon a 2012 Supreme Court decision in the case National Federal of Independent Businesses (NFIB) v. Sebelius, when the justices ruled that the mandate was constitutional because it fell under Congress’ taxing authority. So if the mandate is only permissible as a tax, and the tax is now zero, the conservative states argue that the mandate itself is now unconstitutional — and with it, the rest of the law.

0 Comments
© 2024 MMIT
Leslie Small

Leslie Small

Leslie has been working in journalism since 2009 and reporting on the health care industry since 2014. She has covered the many ups and downs of the Affordable Care Act exchanges, the failed health insurer mega-mergers, and hundreds of other storylines spanning subjects such as Medicaid managed care, Medicare Advantage, employer-sponsored insurance, and prescription drug coverage. As the managing editor of Health Plan Weekly and Radar on Drug Benefits, she writes and edits for both publications while overseeing a small team of reporters who also focus on the managed care sector. Before joining AIS Health, she was a senior editor for the e-newsletter Fierce Health Payer, and she started her career as a copy editor at multiple local newspapers. She graduated with a dual degree in journalism and political science from Penn State University.

Related Posts

medicare-part-c
May 17

Medicare, Medicaid Segments May Be a ‘Mess,’ but Bounce-Back Expected

READ MORE
hospital-hallway
May 17

As Hospitals’ Commercial Prices Keep Rising, Experts Float Solutions

READ MORE
businessman-viewing-news-update-journalism-headline-on-a-laptop
May 17

News Briefs: CMS Extends Medicaid Redetermination Deadline

READ MORE

GAIN THERAPEUTIC AREA-SPECIFIC INTEL TO DRIVE ACCESS FOR YOUR BRAND

Sign up for publications to get unmatched business intelligence delivered to your inbox.

subscribe today