On Friday, December 14, 2018, just hours before the end of open enrollment on the health care exchanges, U.S. District Judge Reed O’Connor, ruled to strike the entire Affordable Care Act (ACA). The ACA will remain in effect until the case is reviewed on appeal. Employers and individuals should continue to comply with the ACA’s terms in the 2019 plan year. In addition, any penalties accrued while the ACA is in effect will still be owed if and when the ACA is no longer the law. It is highly probable that the Supreme Court will need to act again to determine the fate of the ACA. Until the Supreme Court makes its ruling and Congress takes what ever actions it will in response, it may be difficult to plan for 2020 employer coverage until far later in the year. The Hutchison team will keep you apprised of developments impacting employer health plans and initiatives as this story develops.
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