A lawsuit has been filed against the federal government on 26th February 2018 over Obamacare. The lawsuit was filed by a coalition of 20 U.S. states led by Texas Attorney General Ken Paxton and Wisconsin Attorney General Brad Schimel. The coalition claimed that Obamacare was unlawful since it did not have an individual mandate.
Last year, the federal government revoked the requirement in the Affordable Care Act that citizens must have a health insurance. A citizen who does not have a health insurance must pay a fine.
The coalition has emphasized on the fact that the U.S. Supreme Court has declared an individual mandate unconstitutional in the absence of a tax penalty. This, in turn, indicates that the Obamacare is no longer valid and that citizens have a right to be freed from the requirements posed by such an act.
It is unsure if the Trump government will be supporting the law or not. The Justice Department did not comment on the situation.
Under the individual mandate in Obamacare, young and healthy Americans were required to buy health insurance coverage. This was done in order to ensure that the health insurance market remained viable.
The basis for declaring Obamacare unconstitutional
The law came into existence in 2010 and was a signature achievement during the presidency of Barack Obama. As of now, the Republicans have opposed the law.
The lawsuit has been filed in the U.S District Court in Texas. The coalition includes Utah, Georgia, West Virginia, and Arizona.
The tax penalty for the individual mandate was eliminated according to the new tax reforms implemented for the year 2018.
Earlier, in 2012, the Supreme Court had ruled Obamacare as constitutional since the individual mandate was required to pay taxes.
The new tax reforms, however, created confusion by simply eliminating the tax penalty and doing nothing about the Affordable Care Act itself. The only remaining aspect in the ACA is the individual mandate which, according to the ruling of the Supreme Court, cannot exist in the current tax climate.
The new tax reform frees citizens who do not have a health insurance from paying a fine. It is applicable from 2019. The lawsuit aims to get the ACA repealed in order to replace it.
Last year, a move to implement a modified and scaled down version of the bill had failed.
The Trump administration also proposed a set of rules that suggests certain changes in the laws regarding healthcare.