Faulk Company, Inc. v. Kennedy et al.

Docket No.
4:24-cv-00609
District Court
Texas Northern

Goal

  • Award restitution
  • Declaration that agency action is unlawful
  • Vacate agency action

Issues

Case History

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.

News And Analysis (1)

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Current Status

Appeal filed

Legal Issues

Administrative Procedure Act - Contrary to Law, Administrative Procedure Act - Arbitrary and Capricious

Topic(s)

Employer Mandate

Date Filed
June 28, 2024
Case Type
Civil
Court Type
District Court
Court
Texas Northern
Court Division
Fort Worth
Judge
Pittman, Mark T. Appointed By: Donald Trump
Plaintiff(s)
Faulk Company, Inc.
Lead Counsel For Plaintiff(s)
Kelly Hart & Hallman LLP
Defendant(s)
Department of Health and Human Services; United States; Robert F. Kennedy Jr.; Mehmet Oz; Centers for Medicare and Medicaid Services
Lead Counsel for Defendant(s)
Government