On Dec. 31, 2016, the U.S. District Court for the Northern District of Texas issued a nationwide preliminary injunction temporarily blocking enforcement of the Section 1557 non-discrimination rules under the Affordable Care Act (ACA).

ACA Section 1557 is the first federal civil rights law to broadly prohibit discrimination on the basis of sex in federally-funded health programs. Previously, civil rights laws enforced by OCR broadly barred discrimination based only on race, color, national origin, disability or age. The court’s injunction specifically bans the Department of Health and Human Services (HHS) from enforcing the Section 1557 provisions prohibiting discrimination based on gender identity or termination of pregnancy.

In August 2016, five states and three Christian-affiliated health care groups filed a lawsuit challenging the Section 1557 final rule, arguing that the rule:

• Forces them to perform and provide insurance coverage for gender transition services and abortions against their religious beliefs and medical judgment; and
• Violates the federal Administrative Procedures Act (APA), the Religious Freedom Restoration Act (RFRA) and certain protections in the U.S. Constitution.

The Court ruled that, without an injunction, the Section 1557 final rule would likely cause substantial harm for the plaintiffs, including the risk of federal funding withdrawal and civil liability.

The remaining Section 1557 provisions are not affected by the injunction, and will continue to be enforced by HHS’ Office for Civil Rights (OCR). These provisions, which will take effect as scheduled (mostly on Jan. 1, 2017):

• Prohibit discrimination on the basis of disability, race, color, age, national origin or sex (other than gender identity); and
• Enhance language assistance for people with limited English proficiency.

For more information about Section 1557 and the final rule, please contact your NEEBCo representative. A link to a set of Frequently Asked Questions (FAQ’s) is also provided below.

Federal Court Blocks ACA Section 1557 Non-Discrimination Rules 1-5-17

Frequently Asked Questions