A federal judge in Texas struck down the Affordable Care Act in December 2018, a day before the deadline to sign up for next year’s coverage in most states.
The ruling by a federal judge in Texas that the Affordable Care Act is unconstitutional may not stand, but it will elevate health care as a pressing topic in a divided Washington. Democrats are already requesting an appeal, which will likely keep existing law in place while the issue makes its way through the courts.
Here is a quick rundown of what happened in Texas and what the ruling means for your open enrollment and beyond.
In a lawsuit filed this year, a group of Republican governors and state attorneys general challenged the Affordable Care Act, arguing that the requirement that people have health insurance — known as the individual mandate — is unconstitutional and, therefore, so is the entire law.
At issue was whether the individual mandate compelled people to buy coverage after Congress reduced the tax penalty for people who do not have health insurance to $0. (In 2017, the average tax penalty was $708, according to preliminary data.)
In his ruling, Judge Reed O’Connor of the U.S. District Court for the Northern District of Texas said the individual mandate “can no longer be sustained as an exercise of Congress’ tax power.” O’Connor, a George W. Bush appointee, said that he would not “parse the ACA’s provisions one by one,” but that he had to invalidate the whole law.
That does not mean the Affordable Care Act is immediately null. The judge did not issue an injunction to stop federal officials from enforcing the law, and a group of states led by Democrats have promised to appeal the decision.
The case may make its way to the Supreme Court.
The case could threaten the survival of the landmark health law and, with it, health coverage for millions of Americans, protections for people with pre-existing conditions and much more.
But for now, the case is “still moving through the courts,” There will be no impact to enrollees’ current coverage or their coverage in a 2019 plan.”
Do you have questions regarding your health insurance? Then don’t hesitate to contact the experts at Donald Weiss Insurance Services. Our dedicated team is ready to assist you with all your insurance needs.
