The ACA Times


  Show menu
  • Home
  • Articles
  • Get to Know the ACA
  • ACA – Frequently Asked Questions
  • Resources
  • Meet the Editors
  • Trusaic
  • Contact Us
  • Terms of Service
  • Privacy Notice
  
  • Home
  • Affordable Care Act
  • ACA to Remain Following Fifth Circuit Court Decision

Articles

ACA to Remain Following Fifth Circuit Court Decision

December 20, 2019 Robert Sheen Affordable Care Act
ACA to Remain Following Fifth Circuit Court Decision

2 minute read:

On Wednesday of this week, the Fifth Circuit handed down a ruling regarding the constitutionality of the Affordable Care Act. The majority of the ACA will continue to remain the law of the land, possibly for good.

The Fifth Circuit decision arises from a suit brought by a number of Republican states and several individuals in the Federal District Court in Fort Worth Texas. They argued that the Individual Mandate, with the tax penalty zeroed out by Congress, was unconstitutional and that the entire ACA needed to be struck down as a result. The District Court in Fort Worth agreed and struck down the whole ACA in December of 2018. That decision was stayed pending appeal.

While the Fifth Circuit affirmed that the ACA’s Individual Mandate is unconstitutional now that the tax penalty has been set to $0, they sent the case back to the District Court in Texas for a new decision on the issue of Severability or whether the other provisions of the ACA can exist without the Individual Mandate.

Severability is a longstanding Federal judicial doctrine that dictates that the court only strike down the unconstitutional portion of legislation and those provisions that are inextricably linked to it. The Fifth Circuit found that the District Court did not go through the necessary fact finding to determine which provisions of the ACA were inextricably linked to the Individual Mandate when it invalidated the entire ACA.

With no credible Republican health care proposals on the horizon, the possibility of a complete ACA repeal and replace is growing smaller and smaller.

At this time, it is likely that the ACA will survive, even if it lives on without the federal Individual Mandate. With individual states passing their own Individual Mandate legislation, it rings home the reality that the law is becoming more ingrained into U.S. health care ecosystem.

Already, states such as California, New Jersey, Massachusetts, Vermont, Rhode Island and the District of Columbia have passed their own state-wide individual mandate. More are likely to follow.

Employers, this means that complying with the ACA’s Employer Mandate is still a major requirement to be met.

Under the ACA’s Employer Mandate, Applicable Large Employers (ALEs) (organizations with 50 or more full-time employees and full-time equivalent employees) are required to offer Minimum Essential Coverage (MEC) to at least 95% of their full-time workforce (and their dependents) whereby such coverage meets Minimum Value (MV) and is Affordable for the employee or be subject to Internal Revenue Code (IRC) Section 4980H penalties.

With the ACA remaining intact, the IRS will continue to increase their enforcement activities around compliance with the law, as we have already seen.

The tax agency is currently issuing Letter 226J penalty notices for the 2017 tax year and is expected to begin issuing penalties for the 2018 tax year shortly. Organizations should elect to undergo an ACA Penalty Risk Assessment to learn their penalty exposure and implement course-correction to avoid any future exposure.

Contact us today to get started with meeting the ACA deadlines on time and with accuracy for the 2019 tax year.

We’re committed to helping companies reduce risk, avoid penalties, and achieve 100% ACA compliance. For questions about the ACA contact us here.

Summary
ACA to Remain Following Fifth Circuit Court Decision
Article Name
ACA to Remain Following Fifth Circuit Court Decision
Description
A fifth circuit court ruling affirmed the individual mandate unconstitutional without the tax penalty.
Author
Robert Sheen
Publisher Name
The ACA Times
Publisher Logo
The ACA Times
Short URL of this page: https://acatimes.com/nop
Robert Sheen

Robert Sheen

Robert Sheen, Esq., is editor-in-chief of The ACA Times. He also is founder, president and CEO of Trusaic.

Robert Sheen is Founder and President of Trusaic, Inc. Robert is a graduate of the University of Southern California, in Business Administration with an emphasis in International Finance. He earned his Juris Doctor from Loyola Law School, Los Angeles, concentrating in Tax Law.

View more by Robert Sheen

Related tags to article

ACA ComplianceACA Employer MandateACA Individual MandateACA Penalty Risk AssessmentACA ReportingAffordable Care ActApplicable Large EmployersCongressFederal District Judge in Fort Worth TexasHealth Care CoverageIRC Section 4980H PenaltiesIRSIRS Letter 226JMinimum Essential Coverage (MEC)Minimum Value (MV)
Related Articles New York Pay Transparency Law Delayed to November New York Pay Transparency Law Delayed to November
Related Articles Takeaways From the 2021 UK Gender Pay Gap Reporting Results Takeaways From the 2021 UK Gender Pay Gap Reporting Results
Related Articles LinkedIn Settlement Demonstrates Need For Accurate Pay Equity Audits LinkedIn Settlement Demonstrates Need For Accurate Pay Equity Audits
Related Articles Administration Predicts Lower ACA Enrollment by Robert Sheen  •  
Related Articles IRS Eases Rules on Hardship Exemptions by Robert Sheen  •  
Related Articles HHS Awards $36 Million To Health Centers by Robert Sheen  •  
ACA Essential Guide for Employers 2021
Subscribe

Popular Posts

  • IRS Proposed Ruling Could Change ACA Affordability
  • ACA Penalty Letter 226J on The Rise
  • Submit ACA Corrections Now to Avoid IRS Penalties
  • New PTC Data is Cause For Concern For Employers
  • ACA Enrollment Reaches 35 Million Signups

Trending Topics

  • Regulations
    (91)
  • Legislation
    (47)
  • Editorials
    (19)
  • ACA Compliance
    (167)
  • Tax Filings
    (19)
  • Applicable Large Employer (ALE)
    (13)
  • Penalties
    (18)
  • IRS
    (87)
  • Health Insurance Marketplace
    (28)
  • Polls/Surveys
    (18)
  • Health Care Reform
    (22)
  • Reporting
    (22)
  • IRS 226J/226-J
    (28)

Categories


Brought to you by Trusaic

 

Twitter Facebook

Downloads

The ACA 101 Toolkit

The Essential Guide to the ACA

Letter 226J Infographic

5 Common ACA Compliance Mistakes

Triangle of Trust

Articles

IRS Affordability Safe Harbors Help Avoid ACA Penalties

Calculating FT and FTE Employees

The ACA Monthly Measurement Method: A Few Examples

The IRS’s 1095 Forms for ACA Explained

Incorrect ITINs Will Cause Havoc With ACA Compliance

Knowledge Center

Get to know the ACA

Get to know Letter 226J

Webinar: What triggers an ACA penalty

Trusaic News

Our Story


FEATURED IN

Human Resources Today
Connected Health Pulse

© 2021 Copyright Trusaic - All Rights reserved.

Close Window

Loading, Please Wait!

This may take a second or two. Loading, Please Wait!