U.S. Supreme Court Hears Oral Arguments in Challenge to ACA

On Tuesday, the U.S. Supreme Court (SCOTUS) heard oral arguments on California v. Texas, which seeks to strike down the Affordable Care Act (ACA). Brought by several states, and led by Texas, the case argues that since Congress reduced the individual mandate penalty to zero in 2017, the mandate is now unconstitutional and therefore the entire ACA should be invalidated.

Three significant issues are being considered by SCOTUS including whether the parties (Texas et al) have standing to sue, the constitutionality of the individual mandate, and severability – if the mandate is ruled unconstitutional, will the remaining ACA provisions remain law.

According to court observers, it appears likely the ACA may survive another SCOTUS challenge; however, the individual mandate could be ruled unconstitutional. A final decision will be rendered by the high court sometime next year.