2024 Pay or Play Affordability Percentage

U.S. Supreme Court to Hear ACA Challenge After Election Day

The Supreme Court will hear arguments challenging the constitutionality of the Affordable Care Act (ACA) one week after Election Day – on November 10, 2020. This will be the third time the Supreme Court has reviewed the ACA’s constitutionality since the law’s tenth anniversary of enactment in 2010.


Back in December of 2019, a United States Court of Appeals for the Fifth Circuit ruled that the ACA’s individual mandate was unconstitutional due to the elimination of the individual mandate penalty. The appeals court then remanded the case to the lower court to determine whether the rest of the ACA can remain in place without the individual mandate.

Texas v. Azar, the lawsuit which challenged the constitutionality of the ACA’s individual mandate, was filed in 2018 by 18 states after the individual mandate penalty was eliminated. Soon after, the Supreme Court was asked to take up the case before the lower court issued a ruling; which the court then denied the motions to expedite consideration of Texas v. Azar — concluding there is no emergency that would justify expediting the case.

What’s Next?

While the challenge is currently pending, all existing ACA provisions will remain intact and applicable; Therefore, this challenge does not impact Exchange enrollment, the ACA’s employer shared responsibility pay or play penalties, reporting requirements, or any other applicable ACA requirement.

A verdict on the case is expected to be reached during the spring of 2021. For more information, click here.

Should you have any questions, don’t hesitate to reach out to our Creative Benefits Team at 866-306-0200 or solutions@creativebenefitsinc.com.