Trump Administration Shifts on Obamacare, Asks Judges to Toss Entire ACA

In December 2018, U.S. District Court Judge Reed O’Connor in the Northern District of Texas ruled in Texas v United States that the Affordable Care Act was unconstitutional, claiming that the constitutional foundation for the law—the requirement that people buy insurance or pay a penalty—was no longer constitutional because Congress had repealed the penalty. And, because that provision was so central to the health law, he said the whole thing had to be invalidated.

Earlier this week, Justice Department attorneys filed a letter with the U.S. Court of Appeals for the Fifth Circuit in New Orleans indicating that O’Connor’s decision “should be affirmed,” and that the “United States is not urging that any portion of the district court’s judgement be reversed.”

The letter indicates a “major” shift within the Trump Administration, according to Steve Vladeck, a law professor at the University of Texas. “The Justice Department’s indication that it will defend Judge O’Connor’s judgment in its entirety suggests it now believes the entire statute must fall, from coverage for pre-existing conditions to the Medicaid expansion, and everything in between,” he explained, adding that shift in position “would have enormous consequences if ultimately accepted by the courts.”

Democrats, meanwhile, have indicated they plan to defend President Barack Obama’s 2010 health law, focusing heavily on the provision that prevents insurers from denying coverage based on existing medical conditions.

A group of 17 Democratic attorneys general have filed documents to intervene in the case. Currently, the lower court’s ruling is on hold pending a decision by the appeals court.

For questions, comments or concerns, please contact Jennifer Duell Popovec