Last December, a federal judge in Texas District Court ruled that the Affordable Care Act (ACA) was unconstitutional. The decision came in response to a lawsuit filed by 20 Republican state attorneys general. These attorneys general argued that the ACA was unconstitutional because there is no longer a penalty associated with the Individual Mandate, and the judge agreed. The judge issued a stay on his decision knowing it would be appealed to a higher court. The Fifth Circuit Court of Appeals in New Orleans said earlier this month it will begin hearing oral arguments of the appeal in July.
There are three potential outcomes from the appeal:
It’s too early to know how the Fifth Circuit Court of Appeals will rule, but it is looking more and more like this lawsuit will ultimately find its way to the U.S. Supreme Court. We may not know the fate of the ACA for another year, if not longer.