On March 2, 2020, the Supreme Court of the United States granted certiorari to hear appeals in two cases concerning the constitutionality of the Affordable Care Act (ACA): California, et al. v. Texas, et al., Case No. 19-840 and Texas, et al., v. California, et al., Case No. 19-1019. The order sets the stage for the Court to hear a key challenge to the ACA – whether a legislative change to eliminate the tax penalty of the individual mandate rendered the ACA unconstitutional.

As previously reported here, the United States District Court for the Northern District of Texas issued a ruling in December 2018, holding the entire ACA unconstitutional based on Congress’s decision to set the penalty under the individual mandate at zero dollars. The district court also held that the entire ACA was invalid because the individual mandate could not be severed. As previously reported here, in a split decision on appeal, the Fifth Circuit affirmed the district court’s decision that the penalty-free individual mandate was unconstitutional but ordered the district court to reconsider the severability question on remand.

The petition for certiorari filed in California v. Texas, No. 19-840 can be found here. The petition for certiorari filed in Texas v. California, No. 19-1019 can be found here. The Supreme Court ordered the two cases consolidated for briefing and oral argument under case No. 19-840. The Court also granted leave for 33 State Hospital Associations to file a brief as amici curiae.

The Court did not indicate when it would hear the case, but it is likely that arguments will not be heard until spring or summer of 2021. King & Spalding will be carefully monitoring developments in this case, so please stay tuned for future updates.