Texas Court Invalidates ACA
On December 14, 2018, a Texas district court invalidated the entire Affordable Care Act (“ACA”). This includes the Individual Mandate, Employer Penalty, mandated benefits such as the prohibition against preexisting condition exclusions, taxes such as the PCOR fee, the establishment of the Marketplace and offering of subsidies, and reporting such as Form 1095-C reporting. The ruling does not constitute a final determination and the decision will be appealed. Therefore, there is no immediate impact. Absent further direction, all provisions of the ACA remain in effect, including:
• The Employer Mandate and associated annual reporting on Forms 1094-C and 1095-C (due to employees by March 4, 2019 for calendar year 2018).
• Insurance market reforms, including the prohibition on preexisting condition exclusions, limitation on waiting periods, prohibition on lifetime and annual dollar limits, and coverage for children up to age 26.
• Availability of premium tax credits to assist certain low-to-middle income individuals in purchasing health insurance through the Marketplace.
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