ALERT: ACA Remains in Effect Despite Justice Department Announcement

Last Updated on March 26, 2019

DoJ Support of Federal Judge’s Ruling Leaves ACA Requirements Unchanged

Despite the March 25th announcement that the U.S. Department of Justice is upholding a Texas federal judge’s ruling that the Affordable Care Act (ACA) is unconstitutional, the ACA currently remains in effect.

DoJ Filing with Court of Appeals

On December 14, 2018, district court judge Reed O’Connor ruled that because Congress eliminated the penalty on individuals without ACA-compliant health coverage effective Jan. 1, 2019, the ACA’s individual mandate requiring people to have health insurance could no longer be sustained. O’Connor then struck down the entire ACA, since Congress would not have passed the ACA without the individual mandate.

On March 25, 2019, The Department of Justice submitted a new filing with U.S. Court of Appeals for the Fifth Circuit stating that the district court’s opinion came to the correct conclusion, and the DoJ will support it on appeal.

What this Means for Business Owners

There will likely be a lengthy process in which the ruling will be appealed to the Fifth Circuit Court of Appeals, and then move on to the Supreme Court. All ACA tracking, reporting and administrative tasks, and penalties for noncompliance, remain in effect. MyHRC will continue to provide updates as they become available.

If you have questions or need assistance with your reporting needs, please contact Chris Cooley at (855) 538-6947 ext 108.