Court Ruling Against ACA Hurts Patients and Destabilizes Health Insurance Markets

Center for American Progress logoYesterday, despite the faulty legal reasoning of the Republican attorneys general and governors who initiated the Texas v. United States health care repeal lawsuit, as well as the clear partisan nature of the case, the U.S. Court of Appeals for the 5th Circuit ruledthat the Affordable Care Act’s (ACA) individual mandate was unconstitutional following enactment of the so-called Tax Cuts and Jobs Act of 2017, which zeroed out the individual mandate penalty. The 5th Circuit also remanded the case back to the U.S. District Court for the Northern District of Texas to determine what other parts of the ACA can stay in place given its decision that the individual mandate is now unconstitutional. Not only does this ruling increase uncertainty and threaten health care coverage for millions, but it also places power over the U.S. health care system back into the hands of Judge Reed O’Connor—a man who legal scholars say was handpicked “for his partisan loyalties” and who previously ruled that the entire law must be struck down.

After several failed attempts by congressional Republicans to repeal the ACA, President Donald Trump’s allies—with the support of his Department of Justice—are taking a circuitous route through the judiciary to advance their assault against the ACA.

A ruling that invalidates the ACA or core features of the law would have a devastating impact on the American people. The Trump administration seems well aware of this, as it has previously said that it would request a stay to delay repeal if the courts strike down the entire ACA and may try to slow down any appeal to the U.S. Supreme Court. Yet by backing the lawsuit without any replacement plan, Trump is essentially gambling for “repeal and delay,” a proposal that was too unpopular and damaging to pass Congress. Continue reading