Supreme Court Upholds ACA Preventive Services Mandate.

Overruling a 5th Circuit decision, on June 27, the U.S. Supreme Court in Kennedy v. Braidwood Management, upheld the ACA requirement that most group health plans cover services that have an “A” or “B” rating, as determined by an advisory committee called the U.S. Preventive Services Task Force. By way of background, the ACA preventive care mandate requires health care providers to cover certain preventive services without requiring the patient to contribute to the cost (whether through deductibles, co-pays or otherwise). The plaintiffs in this case objected, arguing that the tax force members are principal officers under the Constitution's Appointments Clause, meaning that they must be appointed by the President and confirmed by the Senate. The USSC disagreed, finding the task force members are inferior officers and that appointment by the Secretary of Health and Human Services (HHS) is consistent with the Appointments Clause. Inferior officers are those who are directed by others who were appointed by the President. The court reasoned that the individuals were inferior officers because their work was directed and supervised by HHS, namely because the Secretary of HHS had authority to remove them at will and had authority to review and block their recommendations before they take effect. As such, all non-grandfathered plans must continue to provide first-dollar coverage for all services with A or B ratings. For more information on the ACA requirements, visit Tax Facts Online. Read More: Link to Q8838. Note: Q is updated.