Affordable Care Act Intact After Supreme Court Rejects Challenge To Obamacare

By Anna McDonald and Benjamin Trujillo, JD, LLM – Senior Advisor

On Thursday, the Supreme Court dismissed the third (and likely final) challenge to invalidate the Affordable Care Act, known as Obamacare.

Plaintiffs in the case alleged that without a monetary penalty for failing to obtain minimum essential health insurance coverage, the Act as a whole was unconstitutional.  By ruling that the plaintiffs lacked standing, the Supreme Court did not address the constitutional issues raised by the lack of a monetary penalty.  The Supreme Court wrote that in order to have standing the plaintiff must allege a personal injury that is a fairly traceable injury from the alleged unlawful conduct, and in turn ruled the plaintiffs lacked the standing to raise questions of the Act’s validity.

Due to Thursday’s ruling any protective claims filed for future refunds on the net investment income tax paid by high earners will not be applicable.

“Given the current layout of the court, a ruling against the ACA was not far-fetched,” said Senior Advisor Benjamin Trujillo, JD, LLM. “Therefore, filing the protective claim insured that if the ACA had been deemed unconstitutional, taxpayers who had been paying it would have preserved their shot at receiving a refund; a refund that for many of our clients was worth tens of thousands of dollars. It is just good practice to help our clients protect not only their current assets, but their claims for future assets.”

Compardo, Wienstroer, Conrad & Janes continues to analyze legislation, court rulings and news to provide updates relevant to our clients. Having a plan which protects and preserves your wealth for generations to come is what is most important to us. We are committed to helping you prepare for any changes coming your way. Our staff of diverse professionals stays informed to help you make better financial decisions. We serve Family Office, Professional Athletes and Family CFO clients.  You can visit our website here.

© 2021 Moneta Group Investment Advisors, LLC. All rights reserved. These materials were prepared for informational purposes only based on materials deemed reliable, but the accuracy of which has not been verified; trademarks and copyrights of materials linked herein are the property of their respective owners. This is not an offer to sell or buy securities, nor does it represent any specific recommendation. You should consult with an appropriately credentialed professional before making any financial, investment, tax or legal decision. Past performance is not indicative of future returns. These materials do not take into consideration your personal circumstances, financial or otherwise.

Additional articles