Updated at 7 p.m.

The U.S. Court of Appeals for the Fifth Circuit on Wednesday ruled that the Affordable Care Act's individual mandate is unconstitutional, but sent the matter back down to a district court to determine whether that provision can be removed from the rest of the Obama-era healthcare law.

The split panel found that both groups of states in the case have standing, one to challenge the Obama-era health policy and the other to defend it. The panel also found the individual mandate is now unconstitutional because it can no longer be read as a tax, but remanded the case to the district court to provide additional analysis on severability.