Yesterday, the Fifth Circuit Court of Appeals struck down the Affordable Care Act’s (“ACA”) requirement that individuals either purchase health insurance or pay a tax (the “individual mandate”). The court held that the individual mandate is unconstitutional and remanded the case to the district court to reconsider whether the remainder of the ACA remains valid.

Democrats defending the constitutionality of the ACA have indicated they intend to ask the U.S. Supreme Court to review the Fifth Circuit’s decision. However, it is uncertain whether the Supreme Court will do so, or wait for further rulings from the district court and Fifth Circuit.

The ACA remains the law while the litigation continues, which means that employers are still required to comply with their obligations under the ACA.

If you have any questions about the ruling or the ACA, please contact your Executive Compensation and Employee Benefits counsel at Smith, Gambrell & Russell, LLP.