Company: SXTPW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001013762-25-003343
Chunk: 72

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 72
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 bill. None of these measures were passed
by the U.S. Senate. The ACA has also been challenged numerous times in various court cases, including challenges before the U.S. Supreme
Court. In the most recent case (decided in June 2021) the Supreme Court held that the individual plaintiffs and states lacked standing
to challenge the constitutionality of the ACA.

Previously in January 2017, President Trump signed
an Executive Order directing federal agencies with authorities and responsibilities under the ACA to waive, defer, grant exemptions from,
or delay the implementation of any provision of the ACA that would impose a fiscal or regulatory burden on states, individuals, healthcare
providers, health insurers, or manufacturers of pharmaceuticals or medical devices. In October 2017, President Trump signed a second Executive
Order allowing for the use of association health plans and short-term health insurance, which may provide fewer health benefits than the
plans sold through the ACA exchanges. At the same time, the Administration announced that it will discontinue the payment of cost-sharing
reduction (“CSR”), payments to insurance companies until Congress approves the appropriation of funds for such CSR payments.
The loss of the CSR payments is expected to increase premiums on certain policies issued by qualified health plans under the ACA.

For CSR claims made by health insurance companies
for years 2018 and later, further litigation will be required to determine the amounts due, if any. Further, in June 2018, the U.S. Court
of Appeals for the Federal Circuit ruled that the federal government was not required to pay more than $12 billion in Affordable Care
Act risk corridor payments to third-party payors who argued the payments were owed to them. In April 2020, the United States Supreme Court
reversed the U.S. Court of Appeals for the Federal Circuit’s decision and remanded the case to the U.S. Court of Federal Claims,
concluding the government has an obligation to pay these risk corridor payments under the relevant formula.

A bipartisan bill to appropriate funds for CSR
payments was introduced in the Senate, but the future of that bill is uncertain. Further, each chamber of Congress has put forth multiple
bills designed to repeal or repeal and replace portions of the ACA. Although none of these measures have been enacted by Congress to date,
Congress may consider other legislation to repeal and replace elements of the ACA. Congress will likely consider other legislation to
replace elements of the ACA, during the next Congressional session. We will continue to evaluate the effect that the ACA and its