The health care reform law was upheld today in the U.S. Supreme Court, which concluded that the controversial individual mandate is a tax and therefore falls into Congressional authority in the Taxing Clause of the Constitution.
Chief Justice Roberts’ ruling was based on logic that was not the key focus of in oral arguments last March, when all sides argued whether the mandate that individuals purchase insurance or pay the government was a proper use of Congress’ Constitutional authority to regulate trade and commerce. In fact, the Court decided the individual mandate was not authorized under those authorities.
However, the opinion focused on another argument made by the Obama Administration — that the individual mandate was constitutional if one viewed it as raising the taxes on people who do not have health insurance. Whether or not the justices agreed with tax increases, it was definitely in Congress’ purview, the ruling said.
Many pundits expected that the law would either be repealed completely or in part, so the outcome is sure to generate strong reaction from employer groups and other opposed to the law and its individual, employer and insurance mandates.
The court did however rule that the provisions mandating Medicaid expansion violated the Constitution by threatening States with the loss of their existing Medicaid funding if they decline to comply with the expansion.