As you may have heard, a federal judge in Texas recently ruled that the Affordable Care Act (ACA) is unconstitutional. The holding rests on the theory that the 2012 Supreme Court decision upholding the law is no longer valid after the 2017 Congressional appeal of the individual mandate portion of the ACA.
There are no immediate impacts of the decision, it is important that employers continue to comply with the law. Although this federal ruling does not repeal, enjoin, or eliminate the law, it does open up a legal pathway to potential future disruption of the ACA. Of course, Republicans and President Trump view this decision as a win in the fight against the ACA, but Democratic leaders have already come out against the decision. It is likely that we will see other states appeal this ruling soon, and the ACA’s constitutionality may again find its way to the Supreme Court.
If you have any questions about the impact of this recent ruling, or any other ACA topic, please contact your First Advantage account manager or your legal counsel. First Advantage has been offering ACA compliance and reporting services since the inception of ACA, and we will continue to keep clients informed of any ACA changes.