The court struck down part of the Medicaid expansion.

BREAKING: Supreme Court upholds healthcare reform law

By Joe Carlson

Posted: June 28, 2012 – 10:15 am ET


The U.S. Supreme Court ruled that the insurance provisions of the Patient Protection and Affordable Care Act are constitutional, handing President Barack Obama a major election-year victory and shunning 26 states that had sought to overturn the reform law.

The court ruled that Congress has the power to compel individuals to purchase insurance as a tax on people who do not have health insurance.

“The individual mandate cannot be upheld as an exercise of Congress power under the Commerce Clause,” Chief Justice John Roberts wrote in the majority opinion (PDF). “In this case however, it is reasonable to construe what Congress has done is increasing taxes on those who have a certain amount of income but choose to go without health insurance. Such legislation is within Congress’ power to tax.”

The landmark decisions end two years of legal uncertainty and clear the way for full implementation of the 906-page law. That includes establishing insurance exchanges in each state, prohibiting insurance companies from discriminating against the sick, and requiring nearly all Americans to prove on their income taxes that they carry health insurance starting in 2014.

Read more: BREAKING: Supreme Court upholds healthcare reform law – Healthcare business news and research | Modern Healthcare

Health Care Law Largely Stands

Breaking News Alert
The New York Times
Thursday, June 28, 2012 — 10:43 AM EDT

Supreme Court Allows Health Care Law to Largely Stand

The Supreme Court on Thursday largely let stand President Obama’s health care overhaul, in a mixed ruling that Court observers were rushing to analyze.

The decision was a striking victory for the president and Congressional Democrats, with a majority of the court, including the conservative chief justice, John G. Roberts Jr., affirming the central legislative pillar of Mr. Obama’s term.

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