Affordable Care Act Individual Mandate Upheld - What Employers Must Do Now
On June 28, 2012, the U.S. Supreme Court, in a 5-4 decision, upheld as constitutional the individual mandate under the Patient Protection and Affordable Care Act ("PPACA"), often called "Obamacare." In a surprising decision, the Court found that the individual mandate passed constitutional muster under the Federal government’s taxing authority, even though it exceeded the authority of Congress to regulate under the Commerce Clause.
The Court also held that PPACA’s Medicaid eligibility expansion provisions were unconstitutional, because the government cannot force states to expand Medicaid by threatening to withhold existing Medicaid Funds.
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