Trump Administration Looks To Dump Affordable Care Act

In a federal appeals court filing, the Justice Department said it agreed with the ruling of a federal judge in Texas that invalidated the Obama-era Affordable Care Act, according to CNN. 

What Happened 

The Trump administration said Monday "it is not urging that any portion of the district's court's judgment be reversed," CNN said. 

The policy is a departure from the Justice Department's position under former Attorney General Jeff Sessions. At that time, the department wanted only the community rating rule and guaranteed issue requirement repealed, CNN said.

Why It's Important 

Health care shaping up to be a key issue in the 2020 presidential election. After nine years of ACA, Congress cannot agree on improving the law, even as membership and participation in the insurance marketplace dip downward again, according to The Washington Post

Enrollment figures released Monday by Centers for Medicare and Medicaid Services showed 300,000 fewer enrollees across all states and in Washington, D.C. versus 2018, the Post said. 

Fifty-two million people are covered by ACA; if the administration is successful in striking down the health care law, it will be a complete reversal, and there is nothing in place to replace the health care policy. 

What's Next

The Healthcare Market Summary SPDR,XLV was trading up 1.2 percent at the time of publication Tuesday, while the iShares NASDAQ Biotechnology Index IBB was up 1.74 percent.

The ACA case is before a federal appeals court and is likely to reach the Supreme Court.  

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