The United States Supreme Court recently rejected a lawsuit that challenged the Affordable Care Act’s (ACA) individual mandate.
The ACA’s individual mandate requires “most Americans to have health insurance or pay a tax penalty unless you qualify for an exemption.”
In 2018, 18 states filed a lawsuit as a result of a 2017 tax reform law that eliminates the individual mandate penalty.
The Supreme Court previously upheld the ACA in 2012 on the basis that the individual mandate is a valid tax.
On June 17th, 2021, the Supreme Court officially rejected the lawsuit from 2018 in a 7-2 ruling.
What does this mean for the ACA?
- The Supreme Court ruled that the states did not have a legal right to sue in this case.
- The Court did not decide on the validity of the individual mandate or the ACA as a whole.
- The case is now over, with the ACA remaining as it exists today.
The Supreme Court kept ACA as it is today because allowing a lawsuit to “attack an unenforceable statutory provision would allow a federal court to issue what would amount to ‘an advisory opinion without the possibility of any judicial relief.”
Have questions or concerns about the Supreme Court’s ruling? Contact us by going to www.IntegrityHRManagement.com or calling (830) 331-1300.
For more information, view our infographic.
Photo by Claire Anderson on Unsplash
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