Skip to main navigation Skip to main content Skip to footer
  • For Individuals & Families
  • For Medicare
  • For Providers
  • For Brokers
  • Search
    Search
    Español
  • For Employers:
  • For Employers:
  • Plans and Services

    Plans and Services

  • Who We Serve

    Who We Serve

  • Employer Resources

    Employer Resources

  • Log in to Employer Portal
  • Log in to Employer Portal
  • Plans and Services

    Plans and Services

  • Who We Serve

    Who We Serve

  • Why Cigna Healthcare
  • Employer Resources

    Employer Resources

  • Home Employers Industry Insights Informed on Reform Health Care Reform News SCOTUS Dismisses ACA Case for Lack of Standing

    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 opinion [PDF] in California v. Texas dismissing the case because the Texas-led states and individual plaintiffs lack standing to challenge the Affordable Care Act (ACA). As a result, the ACA remains in effect with no changes.

    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 5th Circuit affirmed the trial court’s decision that the individual mandate should no longer be considered constitutional because the associated financial penalty no longer “produced at least some revenue” for the federal government. Instead of deciding whether the rest of the ACA should be struck down, the 5th Circuit sent the case back to the trial court for additional analysis. Soon after, the Supreme Court agreed to review the case and held oral arguments in November 2020.

    We encourage you to bookmark our health care reform website, www.InformedonReform.com, where we will continue to keep you updated as this news develops.

    Related Resources

  • Informed on Reform News
  • Informed on Reform FAQs
  • Informed on Reform
  • 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.

    I want to...
  • Get an ID card
  • File a claim
  • View my claims and EOBs
  • Check coverage under my plan
  • See prescription drug list
  • Find an in-network doctor, dentist, or facility
  • Find a form
  • Find 1095-B tax form information
  • View the Cigna Healthcare Glossary
  • Contact Cigna Healthcare
  • Audiences
  • Individuals and Families
  • Medicare
  • Employers
  • Brokers
  • Providers
  • Secure Member Sites
  • myCigna member portal
  • Health Care Provider portal
  • Cigna for Employers
  • Client Resource Portal
  • Cigna for Brokers
  • The Cigna Group Information
  • About Cigna Healthcare
  • The Cigna Group
  • Careers
  • Newsroom
  • Investors
  • Suppliers
  • Third Party Administrators
  • International
  • Evernorth Health Services
  • Cigna Healthcare. All rights reserved.
  • Privacy
  • Legal
  • Product Disclosures
  • Company Names
  • Customer Rights
  • Accessibility
  • Report Fraud
  • Sitemap
  • Cookie Settings
  • 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 a listing of the legal entities that insure or administer group HMO, dental HMO, and other products or services in your state). Accidental Injury, Critical Illness, and Hospital Care plans or insurance policies are distributed exclusively by or through operating subsidiaries of The Cigna Group Corporation, are administered by Cigna Health and Life Insurance Company, and are insured by either (i) Cigna Health and Life Insurance Company (Bloomfield, CT); (ii) Life Insurance Company of North America (“LINA”) (Philadelphia, PA); or (iii) New York Life Group Insurance Company of NY (“NYLGICNY”) (New York, NY), formerly known as Cigna Life Insurance Company of New York. The Cigna Healthcare name, logo, and other Cigna Healthcare marks are owned by The Cigna Group Intellectual Property, Inc. LINA and NYLGICNY are not affiliates of Cigna Healthcare.

    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 Healthcare sales representative. This website is not intended for residents of New Mexico.

    Selecting these links will take you away from Cigna.com to another website, which may be a non-Cigna Healthcare website. Cigna Healthcare may not control the content or links of non-Cigna Healthcare websites. Details