U.S.Supreme Court ruling keeps ACA health care coverage intact
In June, the U.S. Supreme Court dismissed a challenge to the Patient Protection and Affordable Care Act (ACA or PPACA) — also known as “Obamacare.”
This decision keeps health insurance coverage in place for qualifying Americans under the Act. It also means employers must keep doing what they’ve been doing for now, in terms of offering coverage and complying with reporting requirements.
In a 7-2 vote to dismiss, the justices ruled in two combined cases — California v. Texas and Texas v. United States.
Texas and 17 other states brought this lawsuit against the United States and federal officials. They were later joined by two individuals.
The case focused on the fact that individuals are no longer penalized for not having health insurance. The plaintiffs argued if the penalty is zero, then that makes the individual mandate unenforceable. And, from the plaintiffs’ perspective, if that mandate isn’t enforceable, then they felt the rest of the ACA was unenforceable, too. The Court essentially said, “not so fast.”
When delivering the opinion of the Court, Justice Breyer said,
“We proceed no further than standing ... [the plaintiffs] have failed to show that they have standing to attack as unconstitutional the Act’s minimum essential coverage provision.”
Basically, the Court said the plaintiffs didn’t have a right to sue. The Court wasn’t ruling on the constitutionality of the individual mandate.
Since 2010, the ACA has required most Americans to obtain minimum essential health insurance coverage. The Act imposed a monetary penalty upon individuals who failed to have coverage. In 2017, Congress nullified the penalty by setting its amount to $0.
So, the health care coverage law remains intact, including all coverage obligations and reporting requirements for employers.
The Affordable Care Act (ACA) is a comprehensive health care law that was enacted in March 2010. Under the ACA’s employer shared responsibility provisions, certain employers must either offer minimum essential coverage that is “affordable” and that provides “minimum value” to full-time employees (and their dependents), or potentially make an employer shared responsibility payment to the IRS.The ACA generally applies to employers with 50 or more full-time employees.
Key to remember: There are no changes to the health care coverage law resulting from a recent U.S. Supreme Court ruling. Everything remains the same for now, including employers’ obligations for coverage and reporting requirements.