A federal judge in Texas has declared that some mandates of the Affordable Care Act (ACA) could no longer be enforced. This includes requirements for insurers to provide many preventive care services, such as cancer, heart, STD, and tobacco screenings, free of charge.
US District Judge Reed O’Connor’s ruling struck down the recommendations of the US Preventive Services Task Force, which determined the preventive care treatments that Obamacare called for. This ruling applies to all task force recommendations issued since the ACA was signed into law on March 23, 2010.
The Justice Department has already appealed the ruling, and the Biden administration is also appealing O’Connor’s earlier ruling that the task force’s recommendations violated the Constitution’s Appointments Clause and that the requirement for free coverage of HIV-prevention drugs violated the Religious Freedom Restoration Act.
The challengers in the case have lost on other claims against the ACA, but they may file their appeal. It is also uncertain whether the administration will ask to pause the rulings until the request is finished.
Despite the ruling, other preventive care mandates under the ACA remain in effect, and it is unclear what immediate impact it will have on job-based and ACA policies. Insurers’ trade associations have reassured patients that their care and coverage will not be affected.
The ACA’s mandate has shown that people responded to the incentive and started using preventive care more often. This ruling, however, could limit access to critical preventive services, early detection of diseases, and narrow care disparities in communities of color.
Over 150 million people have private insurance and can receive preventive services without cost-sharing. As of 2018, most people enrolled in private health coverage have used at least one of the ACA’s no-cost preventive services before the Covid-19 pandemic.
This ruling by Judge O’Connor is the latest legal affront to the landmark 2010 healthcare law and will kick off a new phase of the legal battle over the preventive care measures of Obamacare. An appeal of the case will head to the 5th US Circuit Court of Appeals, and it is possible that the plaintiffs could appeal other aspects of the ruling, putting at risk coverage requirements for additional preventive services at no cost.
If left standing, this decision could significantly impact Americans nationwide, with people who are cost-sensitive likely to go without treatment, especially those in poorer communities. The Justice Department could ask for the rulings to be paused for the appeal, but there has been no request yet. White House spokesperson Karine Jean-Pierre calls the case “yet another attack on the Affordable Care Act.”
If your business needs help navigating how to deal with these law changes, contact Kona HR today.
