The Supreme Court upheld the Affordable Care Act In a 7-2 decision. In its decision, the Court dismissed the challenge as the individuals attempting to overturn it lacked standing.
Due to this judgment, the Affordable Care Act has been able to withstand three Supreme Court challenges. In each of these cases, the justices have made different points and argued different arguments, but despite the court’s conservative shift, the ACA has been increasingly endorsed by the majority of the justices.
Texas is considering a case challenging the Affordable Care Act’s mandate that preventive care be covered in full. In any case, the Supreme Court would not likely take up a case that aims to overturn the ACA itself.
How Will Consumers Be Affected By This Decision?
A person who is in Medicaid under the newly expanded Affordable Care Act, or who purchases their own health insurance and receives its premium tax credits, cost-sharing reductions, preexisting condition coverage, guaranteed-issue rules, and crucial health coverage are all protected.
Many Americans are protected by the law in various ways. Relief is most likely to be felt today by those who have coverage that was not available or would not be available without the Affordable Care Act. Now there is no fear that these Americans will lose their health coverage.
Despite the American Rescue Plan’s enhancements to subsidies, subsidies will remain available through 2022 – or perhaps even beyond if Congress takes action.
Almost every state’s special enrollment period for coverage is currently underway, so people who have been on the fence now have the confidence to enroll. In November, when open enrollment begins, coverage for 2022 will also be available.
The ACA’s requirement that most people maintain health insurance has not changed, even though the ruling today centered around penalties and the individual mandate: Not having health insurance no longer carries a federal penalty because it hasn’t done so since 2019. You’ll still pay a penalty if you don’t have health insurance in New Jersey, the District of Columbia, Massachusetts, and Rhode Island.
For Health Insurers, What Does This Ruling Mean?
Due to the Supreme Court’s dismissal of the case, ACA legal challenges have been looming over those three years of growing insurer participation in ACA-compliant policies.
Although actuaries are generally wary of uncertainty, insurance companies have been profitable in the individual market in recent years after being unprofitable in the early years of ACA. implementation. This is evidence that insurers are increasingly willing to offer plans on the market, despite possible litigation concerns. With the Affordable Care Act no longer under legal threat, more insurers may join the marketplace or broaden their existing coverage areas.
