Spotlight: The Unparalleled Truth 20 States Sue Obamacare
There has been slight movement in the Texas v. United States case launched over the constitutionality of the Affordable Care Act since the repeal of the Individual Mandate.
August case update: At the National Association of Insurance Commissioners summer Boston meeting, D.C.-based benefits lawyer Anthony Shelley said he anticipates that the Texas federal district court will likely rule on the Texas v. United States suit by Jan. 1, 2019, after which there is a good chance the case is bound for the U.S. Supreme Court.
It likely won’t be alone. ThinkAdvisor reports that Shelley believes the U.S. Department of Labor’s new regulations for association health plans, which are aimed at providing small employers access to the type of coverage that currently only large employers with self-insured plans offer, could be basis for another court case. The current administration’s regulations regarding the short-term medical insurance benefit period could also spark its own case.
Previously: The latest news coming from Washington D.C. 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?
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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)
The 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.
