ACA Still in Effect, Despite New Federal Court Ruling

December 26, 2018

A federal district court in Texas has ruled that The Patient Protection and Affordable Care Act (ACA) is unconstitutional following the repeal of the legislation’s individual mandate penalty under the Tax Cuts and Jobs Act of 2017 (TCJA). The court accepted the argument of 18 state attorneys general and two republican governors that the individual mandate penalty was “essential to” the ACA, rendering the health reform law “untenable” in its absence. Although the court granted the states’ motion for summary judgment regarding the ACA’s constitutionality, leaving the remainder of the ACA invalid, the court denied the states’ request for an injunction. As such, the ACA remains valid during the appeal process. Since the ACA was proposed, SESCO has provided guidance to all types of employers to ensure ACA compliance. If employers have questions on whether their policies or practices comply with the ACA and related issues, we recommend they contact SESCO to ensure compliance.