The United States Supreme Court has agreed to hear two petitions on the constitutionality of the individual mandate of the Affordable Care Act. The individual mandate requires virtually all Americans to have health coverage or pay a penalty.
The Court heard arguments against the individual mandate in 2012 and at that time held that the individual mandate was constitutional. The Court opined that the penalty imposed on individuals who did not buy health insurance was a tax, Congress is permitted to impose taxes, and therefore the individual mandate was constitutional.
Since the U.S. Supreme Court decision, the penalty tax for not having health coverage has been reduced to $0 and a U.S. Court of Appeals struck down the mandate finding that the Affordable Care Act’s individual mandate is no longer being applied under Congressional taxing authority.
Two groups are bringing the case to the U.S. Supreme Court. One of the petitions to the Court is from California and a group of states and the other petition is from Texas and a different group of states. The states led by Texas argue that because the penalty for not having health insurance is $0, it is no longer a tax and the individual mandate is unconstitutional. Since the individual mandate is such an important part of the Affordable Care Act, the rest of the law must be invalidated also. California and its supporting states are defending the individual mandate and the ACA.
When the case is heard, the Court will opine on three matters: (1) if the challengers have a right to sue; (2) if the mandate is unconstitutional; and (3) if the mandate is constitutional, can it be separated from the rest of the Affordable Care Act. Oral arguments will be scheduled in the fall and a decision is expected in 2020.