Highlights of the Supreme Court Ruling on Affordable Care Act

On Thursday, June 28, 2012, the Supreme Court upheld the constitutionality of the Affordable Care Act. The following are highlights from this historic ruling and how it may affect your medical practice or health care organization.

• The court upheld the constitutionality of the Affordable Care Act.

• The individual mandate was upheld 5-4.

• The individual mandate was ruled a tax. If an individual does not comply, they must pay the tax.

Highlights from the ruling

• The Court held that the Anti-Injunction Act doesn't apply because the label "tax" is not controlling.

• The Court did not reach severability issues since it upheld the individual mandate 5-4.

Highlights from the ruling

• Medicaid expansion was limited but upheld. This means that Congress cannot revoke a state's entire Medicaid funding if that state refuses to participate in Medicaid expansion.

• The state's choice of non-compliance would only impact new funds.

Highlights from the ruling

In the short term, the health care industry avoids the chaos that might have resulted from the law being overturned or partially invalidated.

Because the individual mandate was upheld, millions of uninsured Americans will receive health care coverage.

What this means for you

This will particularly impact you if you serve Medicaid patients in a state that chooses to comply with the Medicaid expansion.

Your state does not have to comply with the Medicaid expansion under threat of losing existing funding.

What this means for you

The Court ruled that this provision is constitutional only as applies to new federal funds if they didn't comply with the new requirements, rather than all of a state’s federal funding.

What this means for you

Stream our most recent webinar “The Carrots and Sticks of Health Care Transformation” to learn more about the health IT-related provisions of the Affordable Care Act and other government legislation.

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