A number of U.S. states are suing the federal government over the Affordable Care Act, claiming that recently enacted federal tax reform has rendered the healthcare law unconstitutional.
The lawsuit, which was filed in a federal court in Texas, argued that the Tax Cuts and Jobs Act of 2017 negated the tax penalty in the ACA's individual mandate that required people to buy health insurance and thus rendered the law unconstitutional. Texas Attorney General Ken Paxton and Wisconsin Attorney General Brad Schimel led the group of states that also included Arizona, Florida, Georgia and Indiana.
"The U.S. Supreme Court already admitted that an individual mandate without a tax penalty is unconstitutional," Paxton said, adding that the ending of the tax penalty means that there is "no remaining legitimate basis" for the law to remain.
The U.S. Justice Department has not stated if the Trump administration will defend the ACA in court.