Faulk Company, Inc. v. U.S. Department of Health and Human Services et al.

Why this Matters:

The plaintiff argues that a federal regulation implementing the Affordable Care Act’s employer shared responsibility provision is contrary to the statutory text and an arbitrary and capricious exercise of rulemaking authority. Certain large employers may face tax penalties if they don’t make affordable coverage available to their workers. This provision, like others under the Affordable Care Act, involves interactions between enrollment through the Marketplace and the federal tax code.

Potential Impact:

Successful challenges to the implementation of the Affordable Care Act’s employer shared responsibility provision would negate revenue to taxpayers, and could jeopardize incentives for employers to maintain health coverage for certain employees.