• Republican state attorneys general, led by Texas, filed a lawsuit against the federal government on the unconditionality of the ACA, due to the zeroed-out individual penalty.   (Congress reduced the health care penalty to zero.  As such, it was no longer exercising its taxing power and, therefore, invalidated upholding the ACA as constitutional)
  • December 2018, Texas Federal Judge Reed O'Connor struck down the ACA as unconstitutional .
  • Judge O'Connor stayed his ruling for the duration of the appeals process, allowing the ACA and all its aspects, including its employer compliance requirement, to remain in effect throughout all challenges to his ruling.
  • Following O'Connor's decision, a number of states announced that they will appeal the ruling to the Fifth Circuit Court of Appeals.
  • On January 3rd the majority Democrat House, voted to intervene to defend the ACA in court.
  • A lawyer for the House said "the House an unconditional right to intervene" in the case, given that Obamacare was passed into law by Congress, and given that the Trump administration is not defending the law.
Two Paths Forward
  1. Congress votes legislative changes to the law. If the penalty for the individual mandate is reintroduced, the case will be thrown out. (creating a penalty is taxation and therefore upholding the constitutionality of ACA);
  2. The Fifth Circuit Court of Appeals will hear the appeal to Judge O'Connor's ruling this summer. The ruling will either be upheld or overturned.  
Regardless if the ruling us "upheld" or "overturned" respective parties will bring the case before the Supreme Court. 

Assuming this case does go to the Supreme Court and it decides to hear the case, this would likely be in the summer of 2020.

Note to Employers

ACA remains the law of the land until ruled otherwise.  Employers need to continue complying with ACA including compliance with all mandates and deadlines. For any clarification, valued EQ clients can reach out to our COO Raj Singh, Raj@ExpertQuote.com. 

Source: Time Magazine

Employers with health plans that  provide prescription drug coverage  to individuals who are eligible for  Medicare Part D are subject to  certain disclosure requirements.
Plan sponsors must complete an  online disclosure form with CMS  within 60 days after the start of the  plan year, or March 1, 2019, for  calendar year plans.

This action item is being taken care of by your account manager. For further details please email Service@ExpertQuote.com  

Click here for more information. 

Check it out here

RECAP of 2019 Employment Law Seminar

On behalf of Hoge Fenton  we thank those of you joined us for your great questions and participation. In case that you were not able to attend this important seminar, please find a summary of the content that was covered in the seminar by clicking below. 

  • Background Checks
  • Salary Inquiries
  • New Test for Determining Independent Contractor Status
  • Expansion of Sexual Harassment Training
  • Lactation Accommodation
  • I.R.S. Reimbursement Rate
  • Many other critical updates
To read the full seminar, click here

If you have any questions or comments please contact us at  Info@ExpertQuote.com. Or call us at 408-953-1000 .




The ExpertQuote Team.