Obamacare-Related Stocks Plunge After Judge Rules ACA Unconstitutional

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The case arose from a lawsuit filed by a contingent of Republican state attorneys general, one governor, and a few individuals.

The comments from GOP leadership come, however, as some rank-and-file GOP lawmakers say that the ruling puts pressure on Congress to come up with a plan if the ruling striking down the law is ultimately upheld.

Trump tweeted again on Monday, saying, "We have a chance, working with the Democrats, to deliver great HealthCare!" An earlier appellate court decision, involving a number of the states in this case, invalidated the individual mandate but held the entire remainder of the ACA to be valid. The court did not issue an injunction, and the Trump administration has asserted that it will continue to enforce the terms of the ACA pending appeal, notwithstanding its vocal opposition to the law.

A controversial new ruling from a Texas court on the Affordable Care Act could land President Barack Obama's health care law at the center of a Supreme Court case. After Congress repealed the individual mandate in 2017, the federal judge said the rest of the law fell apart.

Judge O'Connor points to the "findings" from the original ACA itself to claim that the mandate was "essential" to various provisions of the law, but those findings were included to bolster arguments that the mandate was constitutional as a legal requirement and were not meant to make the rest of the law dependent on the mandate.

If the court were to overturn the law, it would leave the Trump administration and a divided Congress in a remarkably hard situation - scrambling to come up with an alternative that has eluded the law's critics in Washington ever since its passage in 2010. The U.S. Supreme Court upheld the ACA in 2012 because it included an individual mandate - or a tax penalty for Americans who did not buy health insurance. But numerous Republicans, both during the debate on the vote on the tax law and since, have made it clear that was not what they did. She said the House "will move swiftly to formally intervene in the appeals process to uphold the life-saving protections for people with pre-existing conditions and reject Republicans' effort to destroy the Affordable Care Act".

U.S. House Speaker Nancy Pelosi condemned the ruling and promised that the House of Representatives would participate in appeals after control of the legislative body passed to the Democrats in 2019. The state officials contended that the elimination of the penalty nullified the effects of a 2012 Supreme Court ruling allowing the mandate and penalty.

California Attorney General Xavier Becerra in a statement said the Democrats would appeal Friday's decision.

In Friday's decision, O'Connor said that because Congress lowered the penalty to zero previous year, the mandate no longer came with a "tax" and is unconstitutional.

Last year, Republicans - while attempting to repeal ObamaCare - ended up getting rid of the penalty.

"We'll admit to a certain satisfaction in seeing the Chief Justice hoist on his own logic", the Journal editorial said.

The Texas judge ruled in favor of those arguments. Our guess is that even the right-leaning Fifth Circuit Court of Appeals judges will overturn Judge O'Connor on this point.