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Judge clears the way for appeal of ruling against US health law

Key Points
  • A federal judge in Texas who declared Obamacare unconstitutional has stayed his ruling to allow for appeals.
  • Judge Reed O'Connor announced Sunday that he stands by his ruling but had made the allowance for "everyday Americans" who would face great uncertainty from an immediate termination.
  • A coalition of Democratic state attorneys general are expected to lead an appeal.
Demonstrators in support of U.S. President Barack Obama's health-care law, the Affordable Care Act (ACA), hold up 'ACA is Here to Stay' signs after the U.S. Supreme Court ruled 6-3 to save Obamacare tax subsidies outside the Supreme Court in Washington, D.C. June 25, 2015.
Andrew Harrer | Bloomberg | Getty Images

A federal judge in Texas who recently declared the Affordable Care Act unconstitutional has stayed his ruling to allow for appeals.

That means "Obamacare" remains in effect while litigation continues.

In a ruling issued Sunday, Judge Reed O'Connor in Fort Worth wrote that he stands by his earlier conclusion that the entire law is invalidated by congressional repeal of its fines on people who remain uninsured, like a house of cards collapsing.

However, because "many everyday Americans would ... face great uncertainty" if that ruling were immediately put into effect, O'Connor issued a stay to allow for appeals.

A group of Republican-led states brought the lawsuit. A coalition of Democratic state attorneys general, led by California's Xavier Becerra, intends to appeal. Congressional Democrats also plan to appeal.