A federal judge in Texas on Friday ruled the entire Affordable Care Act is unconstitutional due to a recent change in federal tax law. The move, coming on the eve of the deadline to sign up for coverage for 2019, leaves 20 million Americans’ health coverage in limbo.
At issue in the case is the individual mandate, which requires people to have health insurance. The penalty for not having insurance was dropped to $0 in the most recent tax legislation, potentially undercutting the Supreme Court’s decision in 2012 that the Affordable Care Act was constitutional because of Congress’ ability to tax.
With the no penalty, there’s no tax, the plaintiffs argued in the Texas case.
U.S. District Judge Reed O’Connor agreed: “The Court therefore finds the Individual Mandate, unmoored from a tax, is unconstitutional,” reads the ruling.
The plaintiffs also argued that the individual mandate is so essential to the entire law, that if it’s unconstitutional, the rest must be too. Judge O’Connor agreed on that point too. The case now will likely go to the Supreme Court.
President Trump applauded the decision on Twitter Friday night, writing that he had “predicted all along” that the Affordable Care Act is unconstitutional. “Now Congress must pass a STRONG law that provides GREAT healthcare and protects pre-existing conditions. Mitch and Nancy, get it done!” Mr. Trump wrote.
A coalition of 20 Republican-led state attorneys generals and two individuals brought the lawsuit. After Mr. Trump ordered the Department of Justice to stop defending the health-care law, 15 Democratic states and the District of Columbia took up the defense.
Texas Attorney General Ken Paxton, one of the plaintiffs, applauded the ruling in a statement. “Our lawsuit seeks to effectively repeal Obamacare, which will give President Trump and Congress the opportunity to replace the failed social experiment with a plan that ensures Texans and all Americans will again have greater choice about what health coverage they need and who will be their doctor,” Paxton said.
California Attorney General Xavier Becerra, one of the defending attorneys general, called the ruling an “assault on 133 million Americans with preexisting conditions.” His spokesperson said they plan to appeal.
U.S. Rep. Nancy Pelosi, who will become the Speaker of the House in January, said the ruling “exposes the monstrous endgame of Republicans’ all-out assault on people with pre-existing conditions and Americans’ access to affordable health care.”
This is a breaking story and will be updated.
