Affordable Care Act Upheld

June 28th, 2012 by JBWK

The U.S. Supreme Court ruled on Thursday that the Patient Protection and Affordable Care Act is constitutional. But it did so in an unexpected way.

The majority opinion ruled that the individual mandate was constitutional as a tax, but only four of nine justices ruled that it was valid under the Constitution’s Commerce Clause. The bottom line remains that the entire Affordable Care Act stands.

This is important news for employers who now face the prospect of providing coverage for employees or paying a penalty. There was a remote possibility that the entire Affordable Care Act could have been struck down, leading to uncertainty over many other provisions that have already been implemented. However, the entire law now stands. This should prompt the federal agencies implementing it to continue producing guidance over the next few years to flesh out all the remaining issues.


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