• Analysis or Summary
  • June 15, 2018

DOJ Position on Texas Lawsuit Calling for ACA Repeal – Implications for Children's Coverage

This CHA fact sheet provides an overview of the potential implications for children's private coverage of the Department of Justice's (DOJ) decision to not defend key consumer protections of the Affordable Care Act (ACA). The June 7 filing by DOJ asserts that the law's community rating and guaranteed issue requirements are unconstitutional as a result of the repeal of the individual mandate tax penalty in the 2017 tax reform bill. Those two requirements are key protections for children with private insurance who have a pre-existing condition. Our fact sheet describes the ways that insurers could deny or limit coverage for a child's pre-existing condition in the individual, small group and large group markets if the protections are repealed. 

The DOJ filing is in response to a Texas lawsuit that argues that the repeal of the tax penalty renders the entire ACA unconstitutional. The suit is supported by Republican attorney generals in 19 states and is being countered by 17 Democratic state attorney generals.