Blog

Tuesday, February 27, 2018

Spotlight: The Unparalleled Truth 20 States Sue Obamacare

Facade of US Supreme court in Washington DC as 20 states sue Obamacare and Federal Government

The latest news coming from Washington DC this morning is the news that a coalition of twenty U.S. states sued the federal government on Monday over Obamacare. They claim the law is no longer constitutional following the repeal of the Individual Mandate. So let's shine a light to discover the unparalleled truth as twenty states sue Obamacare.

Spotlight: The Unparalleled Truth 20 States Sue Obamacare


Before we dive into the heart of the case, let’s set the scene for those of you who are just now tuning in.


What states are Involved in Lawsuit?

  • Texas
  • Wisconsin
  • Alabama
  • Arkansas
  • Arizona
  • Florida
  • Georgia
  • Indiana
  • Kansas
  • Louisiana
  • Maine
  • Mississippi
  • Missouri
  • Nebraska
  • North Dakota
  • South Carolina
  • South Dakota
  • Tennessee
  • Utah
  • West Virginia

Leading the lawsuit is Texas Attorney General Ken Paxton in partnership with the Wisconsin Attorney General Brad Schimel. The case was filed Monday, February 26th, 2018 in the United States District Court Northern District of Texas Fort Worth Division. The complaint for declaratory and injunctive relief filed as case number 4:18-cv-00167-O is a 33-page document stating the beliefs and understanding of the combined twenty states.


The Defendants of the Case

  • The United States of America
  • United States Department of Health and Human Services
  • Alex Azar ( Secretary of Health and Human Services
  • The United States Internal Revenue Service
  • David J. Kautter (Commissioner of Internal Revenue)



Lady Justice isolated on Front Columns of the Supreme Court of U.S. background what will happen as 20 states due ObamacareThe State (Plaintiff's) Claim: ObamaCare is Unlawful.

The lawsuit claims that without the Individual Mandate, which was eliminated by President Donald Trump in December as part of the GOP’s Tax Cuts and Jobs Act, the Affordable Care Act (ObamaCare) is unlawful.

Texas Attorney General Ken Paxton stated that “The U.S. Supreme Court already admitted that an Individual Mandate without a tax penalty is unconstitutional. With no remaining legitimate basis for the law, it is time that Americans are finally free from the stranglehold of Obamacare, once and for all.”

Paxton is referring to the previous state suit that was brought before the Supreme Court which ruled five to four that the Affordable Care Act (ObamaCare’s) Individual Mandate was constitutional because Congress had the power to levy taxes. The new lawsuit brought before the court cities this ruling to claim the law is no longer constitutional.


The Administration's Reaction to Lawsuit

The Justice Department has not made an immediate response, and it is currently unclear how the Trump administration will respond to the case.

The Individual Mandate in the Affordable Care Act is used to ensure the health insurance market stays viable by mandating young and healthy Americans buy coverage. This brings down the price for all Americans and benefits the greater good for those needing healthcare.


What Does This Mean For Your Business?

No matter the result of this case your business is still required to file all ACA reporting requirements including ACA Form 1095. If you fail to file by the deadline you will be penalized heavily by the IRS. If you are still seeking an ACA reporting service, ACAwise is here to help.

Simply send in your employees information, and we will take care of the rest. Once we have compiled your forms, you can review for quality assurance. Then we will transmit them directly to the IRS. However, time is running out, and the deadline for providing recent copies is Friday, March 2nd, 2018.



Contact Us Today Before It’s Too Late!