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ACA remains in effect during appeal

Cottingham & Butler has obtained information regarding the recent federal court decision overturning the ACA and wishes to provide its clients with the following update.


What Happened?


On Sunday, December 30, 2018, the federal judge in Texas who declared the Affordable Care Act unconstitutional earlier in December stayed his ruling pending an appeal since residents in many states have already purchased their health insurance plans for 2019.


Summary of Court Action


U.S. District Judge Reed O’Connor upheld his initial Dec. 14 ruling, but said Americans would face great uncertainty during the appeal without a stay. The judge did say the states intervening to defend the ACA failed to show a likelihood they could succeed on appeal at the U.S. Court of Appeals for the Fifth Circuit. While the judge granted Partial Final Judgment declaring the Individual Mandate unconstitutional and inseverable from the rest of the ACA, he has allowed the ACA to continue to operate during the appeals process.


What’s Next?


We suggest our clients continue to comply with the ACA until the appeals process is completed. We will continue to monitor this situation and will provide ongoing updates as more information becomes available.


Contact Us if You Have Questions


Cottingham & Butler is prepared to assist you through this process. If you have any questions, please contact your Cottingham & Butler representative.

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