Tax Facts

Supreme Court Dismisses Latest ACA Challenge, Jun 24, 2021

In a 7 vote, the Supreme Court dismissed the latest challenge to the constitutionality of the Affordable Care Act (ACA). Rather than addressing the case on the merits, the Court determined that the plaintiffs did not have the standing to sue—meaning that the plaintiffs had no legal right to launch the challenge in the first place. Because the individual mandate was reduced to $0 by the 2017 tax reform legislation, the plaintiffs would suffer no adverse consequences if they simply chose to not purchase health insurance. Therefore, there was no government action connected to their injury. However, yet another constitutional challenge to the ACA has already been filed. The next lawsuit challenges the law's zero-dollar coverage for preventative services--including vaccines, contraceptives and other preventative services. For more information on the ACA employer mandate, see Q 8858.


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