Article | 18 June 2021
SCOTUS Dismisses ACA Case for Lack of Standing
On June 17, the Supreme Court of the United States (SCOTUS) issued an
The litigation challenged the ACA’s individual mandate, which provided that most people must maintain a minimum level of health insurance coverage; those who did not do so previously had to pay a financial penalty to the IRS. In the 2017 Tax Cuts and Jobs Act, Congress reduced the penalty to zero dollars as of January 1, 2019, leading to the current litigation. SCOTUS ruled the plaintiffs lack standing because they, “failed to show a concrete, particularized injury fairly traceable to the defendants’ conduct in enforcing the specific statutory provision they attack as unconstitutional. They have failed to show that they have standing to attack as unconstitutional the Act's minimum essential coverage provision.” The ruling on standing means the justices did not rule on the merits of the lawsuit, including whether the individual mandate is constitutional. With the dismissal, SCOTUS vacates the previous court’s judgment and remands the case with instructions to dismiss.
The case was not unanimous, with a vote of 7-2. The opinion was written by Justice Breyer. Justice Alito filed a dissenting opinion, in which Justice Gorsuch joined. This is the third time SCOTUS has upheld the ACA in major challenges to the law.
How the case made its way to SCOTUS
In 2018, a trial court issued a ruling finding that the ACA was unconstitutional because the Tax Cuts and Jobs Act reduced the individual mandate penalty to zero. On appeal, the U.S. Court of Appeals for the
We encourage you to bookmark Cigna's health care reform website,
Related Resources
As the health care landscape continues to evolve, Informed on Reform breaking news alerts are expanding to cover a broader range of topics. We will continue to provide updates and alerts on the Affordable Care Act as well as any key federal legislation, regulations or executive orders that could potentially impact health plans.
Page Footer
I want to...
Audiences
Secure Member Sites
The Cigna Group Information
Disclaimer
Individual and family medical and dental insurance plans are insured by Cigna Health and Life Insurance Company (CHLIC), Cigna HealthCare of Arizona, Inc., Cigna HealthCare of Illinois, Inc., Cigna HealthCare of Georgia, Inc., Cigna HealthCare of North Carolina, Inc., Cigna HealthCare of South Carolina, Inc., and Cigna HealthCare of Texas, Inc. Group health insurance and health benefit plans are insured or administered by CHLIC, Connecticut General Life Insurance Company (CGLIC), or their affiliates (see
All insurance policies and group benefit plans contain exclusions and limitations. For availability, costs and complete details of coverage, contact a licensed agent or Cigna sales representative. This website is not intended for residents of New Mexico.