Morris Manning & Martin, LLP

The U.S. Supreme Court Has Largely Upheld The Healthcare Reform Act

06.28.2012

After two years of vigorous debate, and hours of arguments before multiple courts, the Supreme Court has decided in a 5 to 4 decision that the Patient Protection and Affordable Care Act of 2010, commonly known as the Healthcare Reform Act, is constitutional. 

The Supreme Court has determined that the individual mandate requiring the purchase of insurance or the payment of a penalty to the government through individual tax returns, is within Congress' constitutional power to levy taxes.  The Supreme Court also upheld Congress' power to expand Medicaid eligibility to all individuals with an income less than 133% of the federal poverty level, but refused to allow the threat of loss of existing Medicaid funding to states that decline to comply with the expansion.  With that limitation, this means that the Healthcare Reform Act will continue in its current form and will continue to be implemented until or unless Congress and the President take further action.   

The Supreme Court's decision and the potential changes forthcoming in the redesign of the delivery and payment of healthcare will impact both providers and payers. Morris, Manning & Martin will provide a full and detailed analysis of the decision to assist its clients in navigating the potential impact of the changes driven by the now deemed constitutional Healthcare Reform Act.