HomeWashington Letter2020 ▶ ATS Urges US Supreme Court to Save the Affordable Care Act
ATS Urges US Supreme Court to Save the Affordable Care Act

The ATS filed an amicus brief in the U.S. Supreme Court case, California v. Texas, which challenges whether the Affordable Care Act (ACA) is constitutional. In the brief, the ATS stated that, “coverage expansion of Affordable Care is vital for improving health care outcomes and reducing the cost of treating Americans who suffer from respiratory diseases.” The brief presents evidence to the court that studies have shown that the expanded health insurance coverage achieved by the ACA has improved health outcomes, reduced patient health care expenses and increased the financial security of many newly insured Americans. The brief also notes that the current COVID-19 pandemic makes the expanded access to health insurance coverage, “more essential than ever.”

As background, in previous challenges to the ACA, the U.S. Supreme Court ruled that the ACA was constitutional, based largely on Congress’ power to levy taxes. In 2017, the Congress passed and President Trump signed legislation reducing the ACA tax penalty for not having health insurance to zero, undermining a key enforcement mechanism of the ACA. In 2018, state of Texas sued, claiming that without a tax penalty, the authority of Congress to enact the ACA based on its powers of taxation was no longer valid and the entire ACA was therefore unconstitutional.

The District Court of Northern Texas agreed and ruled that the entire ACA was unconstitutional. The Fifth U.S. District Court of Appeals, by a vote of 2-1, largely upheld the lower court’s decision. The case is now before the U.S. Supreme Court, which will hear oral arguments later this year. The U.S. Supreme Court will consider two issues, first, whether the ACA is still constitutional without the tax enforcement provision and second, whether other parts of the ACA can remain in force if absence of a tax penalty makes that part of the ACA unconstitutional.

Oral arguments in California v. Texas are not yet scheduled but are expected later this year. A final ruling is not expected until after the 2020 election.

Last Reviewed: May 2020