For Benefit Plan Sponsors, Supreme Court Decision On PPACA Is A Whimper, Not A Bang
The long-anticipated decision by the U.S. Supreme Court (sometimes referred to in the press as the SCOTUS decision) regarding the constitutionality of the individual mandate portion of the Patient Protection and Affordable Care Act (PPACA) was issued this morning. As a reminder, the individual mandate requires most Americans to either buy health insurance coverage or pay a tax to the federal government starting in 2014. For employers (and their legal counsel), the constitutionality of the individual mandate was not particularly important in and of itself. What made this decision important was the possibility that the individual mandate portion of the PPACA would be found unconstitutional, in which case the Supreme Court also might strike down the entire law. If the entire law was stuck down, then all of the changes made to group health plans the past few years to comply with PPACA would have been for naught.
Drum roll, please ... none of that happened. The Supreme Court held that the individual mandate was an appropriate exercise of Congress's taxing authority and...
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