U.S. District Judge Beryl Howell has ruled D.C. Health Link, Washington D.C.'s health insurance exchange, can continue its practice of collecting a 1 percent tax from insurers, according to a Washington Business Journal report.
The judge made the ruling in a lawsuit brought by the American Council of Insurers on behalf of insurers that do not offer their plans on D.C. Health Link but are sill required to pay the tax to fund the exchange's budget. The group claimed the tax violated the Patient Protection and Affordable Care Act and the U.S. Constitution because businesses are paying for the exchange that do not directly benefit from it, according to the report.
Judge Howell dismissed the lawsuit, stating all health insurers providing coverage to residents of Washington, D.C., would benefit from Health Link, since it helps create a healthier population by more residents having health coverage.
The American Council of Insurers hasn't announced whether it will appeal the decision, according to the report.