Last Thursday, the U.S. Supreme Court rejected an attempt to invalidate the Affordable Care Act (“ACA”). This action upheld the healthcare law for the third time since its enactment in 2010.
The ruling held that the state of Texas and other challengers had no legal standing to file their lawsuit seeking to nullify the ACA. The decision was seven to two and was written by Justice Stephen Breyer. The Court did not address the broader legal questions raised in the case about whether a key ACA provision was unconstitutional, and if so, whether the entire law should be overturned. The key provision in question was the "individual mandate," which originally required everyone to obtain health insurance or pay a financial penalty.
Last year, protective tax refund claims were filed in case the ACA and the Net Investment Income tax and additional Medicare tax on earned income that were imposed by the ACA, were repealed. As a result of the Court’s decision, the protective tax refund claims become moot, since the basis for the protective claim has not materialized. No further action need be taken.
Please contact your Citrin Cooperman advisor if you have any questions.