What’s at stake with California v. Texas – OCRegister

13November 2020

California v. Texas may seem like another household argument about whether to leave the state, but it’s really the name of the Supreme Court case that could overrule the Affordable Care Serve as unconstitutional.

This is the lawsuit brought by a group of states after the 2017 Tax Cuts and Jobs Act effectively eliminated the ACA’s specific mandate to purchase health insurance by setting the penalty at zero. The Supreme Court had previously supported the ACA by declaring that the penalty was a tax, and the power to tax was certainly within the constitutional powers of Congress.

The justices are now considering 3 separate issues: whether anybody has standing to bring the lawsuit at all, whether the specific mandate is constitutional, and whether the specific mandate can be struck down while leaving the remainder of the law in place.

After two hours of oral argument on Tuesday, legal professionals believed it likely that the court would leave the law on the books. “A majority of the court in California v. Texas appeared to agree with the ACA’s defenders that even if the mandate is unconstitutional, the remainder of the ACA can survive,” composed Amy Howe, an expert writing for SCOTUSblog.

Two lower courts have actually already ruled that the specific mandate is unconstitutional, but U.S. District Judge Reed O’Connor held that the different parts of the law are so economically synergistic that the entire law must fall along with the mandate. After the U.S. Court of Appeals for the fifth Circuit sent the case back to O’Connor for another appearance at that problem, California and your home of Representatives gotten in touch with the U.S. Supreme Court to take up the case. Now it remains in the hands of the nine justices, who will release their choice in June if not quicker.

When the ACA was passed by Congress in 2010, advocates argued that the specific mandate was an essential part of the law to ensure that the pool of insured persons consisted of healthy individuals in addition to sick individuals. Otherwise, the law ran the risk of a financial death spiral from too many claims.

Without the specific mandate, the cash to pay those claims will have to come from higher premiums or from taxpayers. The ACA’s biggest barrier has always been the laws of mathematics.Source: ocregister.com

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