by Leslie Small
The Supreme Court on June 17 ruled 7-2 to dismiss the latest in
a string of high-profile legal challenges to the Affordable Care Act.
The Ruling, at a Glance:
- The case, California
v. Texas, hinged on whether the ACA's individual mandate was
still constitutional after Congress in 2017 changed the tax penalty to $0
for those refusing to purchase health insurance. And if the mandate is
unconstitutional, a coalition of red states argued, the rest of the law is
as well because the ACA's architects intended for that provision to be
"inseverable" from the rest of the statute.
- In their opinion issued June 17, the seven-justice
majority decided they were not convinced that the states trying to take
down the ACA had legal standing to do so, as they suffered no "injury"
from an unenforceable individual mandate.
Impact on ACA Exchanges:
- "This decision will further accelerate current
trends for more insurer participation and growing consumer enrollment in
the marketplaces," says Manatt Health Managing Director Joel Ario. "By
removing another legal cloud looming over the marketplaces, the ACA is
likely to grow even more popular with both insurers and consumers,
especially with the Biden administration prioritizing ACA improvements
over other health reform goals."
- "Today's ruling on the Affordable Care Act
eliminates any uncertainty around the pending court case that may have
impacted the upcoming 2022 health insurance rates," says David
Dillon, a fellow of the Society of Actuaries. "The individual market
is relatively stable, which has resulted in lower annual rate increases
since 2018. This trend will likely continue for the upcoming 2022 rates,
with the caveat that rates will continue to vary across individual states
and marketplaces."
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