• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Bars, bowling alleys and movie theaters cost too much to run and visit. Americans have run out of places to hang out and we're paying with our health

2

The labor market could become so backward that the economy will have to shed jobs to keep unemployment steady

3

Jensen Huang says ‘a lot’ of six-figure jobs in plumbing and construction will soon be unlocked because someone needs to build new AI centers

1

Bars, bowling alleys and movie theaters cost too much to run and visit. Americans have run out of places to hang out and we're paying with our health

2

The labor market could become so backward that the economy will have to shed jobs to keep unemployment steady

3

Jensen Huang says ‘a lot’ of six-figure jobs in plumbing and construction will soon be unlocked because someone needs to build new AI centers
Leadership

The Trump Administration Is Using a New Tactic to Dismantle Obamacare. What You Need to Know About It

By
Natasha Bach
Natasha Bach
Down Arrow Button Icon
By
Natasha Bach
Natasha Bach
Down Arrow Button Icon
June 8, 2018, 7:40 AM ET
Add Fortune on Google for similar content.

The Trump administration is trying out a new tactic to get rid of the Affordable Care Act (aka Obamacare): calling at least one provision of it unconstitutional.

In a brief filed Thursday, the Justice Department sided with Texas and a coalition of other Republican-led states that had filed a suit challenging the constitutionality of Obamacare. While it is uncommon for the Justice Department to go against federal law, Attorney General Jeff Sessions said that he acted with the “approval of the President of the United States.”

Here’s their argument, and what they want.

What does the suit want?

The filing declares unconstitutional the so-called individual mandate—which requires almost all Americans to purchase health insurance or pay a “tax” if they don’t—and calls for several elements of ACA to be invalidated. These include a “ban on insurers denying coverage and charging higher rates to people with pre-existing health conditions.” The Justice Department reportedly also wants to repeal limits on insurance costs based on gender and age.

Nevertheless, the Justice Department’s position did not go quite as far as the Texas suit. In it, the states deem the entirety of Obamacare and its regulations invalid.

What is their argument?

In 2012, the Supreme Court upheld the individual mandate as a legal use of Congress’s taxing power. But under the GOP tax bill signed into law last December, tax penalties for people without insurance were eliminated.

The Justice Department thus claims that the individual mandate is unconstitutional as of Jan. 1. With the repeal of the mandate penalty, the mandate became a simple requirement to buy a service—not a tax—and is therefore not constitutional.

“The individual mandate thus still exists, but it will no longer be fairly possible to describe it as a tax because it will no longer generate any revenue,” the Justice Department said in its brief on Thursday. “As of 2019, therefore, the individual mandate will be unconstitutional under controlling Supreme Court precedent holding that ‘the federal government does not have the power to order people to buy health insurance.’”

Protections for individuals with pre-existing conditions are connected with the individual mandate, according to the Justice Department, meaning that they must also be struck down.

What do other states say?

California and 15 other states filed an opposing brief on Thursday defending the law. A definitive court ruling “could be months away” according to The New York Times, with appeals lasting many more. In the meantime, the existing law will likely remain. However, if the federal court sides with the plaintiffs, those with pre-existing conditions could once again be denied coverage.

About the Author
By Natasha Bach
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Leadership

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • TikTok icon
  • YouTube icon

Latest in Leadership

AI is creating a two-speed jobs market in the UK, Indeed says
AIthe future of work
AI is creating a two-speed jobs market in the UK, Indeed says
By Irina Anghel and BloombergAugust 2, 2026
10 hours ago
As AI creates more entrepreneurs and a skills mismatch, Gen Z faces the choice of being a specialist or a ‘general-purpose nerd’
Successthe future of work
As AI creates more entrepreneurs and a skills mismatch, Gen Z faces the choice of being a specialist or a ‘general-purpose nerd’
By Jason MaAugust 2, 2026
10 hours ago
Jefferies analyst calls out ‘simple-minded’ criticism of SpaceX’s governance
InvestingCorporate Governance
Jefferies analyst calls out ‘simple-minded’ criticism of SpaceX’s governance
By Alastair Marsh and BloombergAugust 2, 2026
16 hours ago
s
C-SuiteWorld Cup
Infantino’s $20 billion FIFA plan collapses and now he faces a European mutiny over the future of the World Cup
By Graham Dunbar and The Associated PressAugust 2, 2026
17 hours ago
For the third time in history, women outnumber men in the workforce as the stay-at-home boyfriend becomes an economic trend
EconomyEmployment
For the third time in history, women outnumber men in the workforce as the stay-at-home boyfriend becomes an economic trend
By Catherina GioinoAugust 2, 2026
17 hours ago
The average worker would need to save for 52 years to claw their way out of the middle class and be classified as wealthy, research reveals
SuccessWealth
The average worker would need to save for 52 years to claw their way out of the middle class and be classified as wealthy, research reveals
By Orianna Rosa RoyleAugust 2, 2026
18 hours ago

Most Popular

Bars, bowling alleys and movie theaters cost too much to run and visit. Americans have run out of places to hang out and we're paying with our health
North America
Bars, bowling alleys and movie theaters cost too much to run and visit. Americans have run out of places to hang out and we're paying with our health
By Catherina GioinoAugust 2, 2026
22 hours ago
The labor market could become so backward that the economy will have to shed jobs to keep unemployment steady
Economy
The labor market could become so backward that the economy will have to shed jobs to keep unemployment steady
By Jason MaAugust 1, 2026
1 day ago
Jensen Huang says ‘a lot’ of six-figure jobs in plumbing and construction will soon be unlocked because someone needs to build new AI centers
Success
Jensen Huang says ‘a lot’ of six-figure jobs in plumbing and construction will soon be unlocked because someone needs to build new AI centers
By Preston ForeAugust 1, 2026
2 days ago
Trump just invoked a 1930 tariff law no president has ever used — against Canada
Commentary
Trump just invoked a 1930 tariff law no president has ever used — against Canada
By Caleb PetittAugust 2, 2026
18 hours ago
Most billionaires are stuck in 'slow philanthropy.' MacKenzie Scott gave away $26 billion and won't stop until 'the safe is empty'
Success
Most billionaires are stuck in 'slow philanthropy.' MacKenzie Scott gave away $26 billion and won't stop until 'the safe is empty'
By Sydney LakeAugust 2, 2026
22 hours ago
As Trump balks again at escalating war, Iran smells 'blood in the water' and looks to exploit its newfound strategic advantage, experts say
Middle East
As Trump balks again at escalating war, Iran smells 'blood in the water' and looks to exploit its newfound strategic advantage, experts say
By Jason MaAugust 2, 2026
13 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.