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affordable care act texas ruling

Affordable Care Act Texas Ruling – What it Means for Employers

March 15th, 2019

The American healthcare system has seen a lot of change in recent years, and if you’ve been in business for a while, we’re sure you’ve probably noticed the shifts. Recently, there has been a lot of buzz around an Affordable Care Act Texas ruling and what individual states may be able to do with it. Let’s look a little closer at what the ruling might mean for employers like you.

What Happened in Texas

At the end of last year, a federal judge in Texas struck down the entire Affordable Care Act on grounds that the required health coverage is unconstitutional, and the rest of the law cannot stand without it. The Justice Department declined to defend the law, and in response a coalition of 16 states and the District of Columbia intervened to defend the law. The ACA was still ruled as unconstitutional in Texas.

What Could This Mean for the ACA 

The next step in the process, one that is likely to occur, is an appeal to the Supreme Court. Until then, the law remains in place, but if the ruling is upheld, it could mean that millions of Americans who depend on the ACA for their insurance will lose it. This would include people who gained coverage under the law’s expansion of Medicaid as well as those who receive subsidized private insurance through the ACA’s online marketplaces.

What You Need to Know

If you, as an employer, provide insurance for your employees, you may not experience drastic changes at all. Rates will likely shift if the ruling is upheld, but they shift all the time (as you likely well know!). If the ACA is ruled as unconstitutional, the provision that young adults up to the age of 26 can be covered under their parents’ plans will be repealed, too. So, if you have a lot of millennials on your staff, you may see an impact there. The appeal process will take time, and things will remain status quo while it goes on. If anything, it’s a great reminder to take stock of your options, what your workforce looks like, what you want it to look like in the future, and how any rulings might impact your ability to offer a range of coverages that fit your business’ and workforce’s needs.

At the end of the day, the healthcare system has been a topic of hot debate and big changes in the last several years, and the ruling in Texas is just another indication that it will likely remain that way for some time to come. Understanding how all of that plays in to what you offer your employees, and your overall HR and PEO systems can be complex. That’s where we come in. As a PEO and HR Consulting company, we can clear up the confusion and help you create a plan that works for your people and your goals, no matter what happens with the ACA.