Reforms Insights

ISSUE 26 • June 21, 2018

Texas v. United States ACA court case

Recently, Attorney General Jeff Sessions filed a brief in a federal district court that the Department of Justice will not defend the constitutionality of the ACA in the court case Texas v. U.S.

It is important to note that the brief does not have any impact on existing law at this time. The brief is one step in, what is expected to be, a long legal process.
The following table provides background on the case.

Court case background

•Following the passage of the tax reform bill in December 2017, which eliminates the individual mandate penalty, 20 Republican state attorneys general and governors filed a lawsuit on Feb. 28, 2018, against the United States, HHS and the IRS asking the that the ACA be declared unconstitutional.

What is the current status of the case?

The Department of Justice filed a motion on June 7, 2018, agreeing that the individual mandate was unconstitutional and certain provisions of the ACA (guaranteed issue and community rating) should be struck down, too.
• However, 17 Democratic state attorneys general were granted a motion to intervene on May 16, 2018, and will defend the ACA in the case.
• The district court ruling is expected later this year; the losing party can then appeal to the Fifth Circuit Court of Appeals.

Are there any immediate changes to the ACA?

• There are no changes at this time. BCBSMI will continue to monitor the court case and keep you informed and will continue to keep you updated about major events related to health care reform.


The information in this document is not intended to impart legal advice upon which you may rely. Rather, it is intended as an educational tool only and does not replace a more rigorous review of changes to the law or consultation with your own legal counsel. The federal government will continue to issue guidance on how any changes to national health reform should be interpreted and applied. The impact of these reforms on individual situations may vary.


This is neither legal nor accounting advice. If you have questions, please consult a lawyer or accountant. The information included in this post was provided by the entity referenced herein.

Filed under: Blue Cross Blue Shield of Michigan, Carrier News, Health Reform