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All systems go! Supreme Court upholds health care reform law

By Timothy Brett posted Jun 28,2012 01:26 PM

  

Deltek Analyst Amanda White reports.

It is a good day and a bad day for states, depending on their status with the controversial health insurance exchange initiative. This morning, the Supreme Court ruled (5-4) the Patient Protection and Affordable Care Act (ACA), including the mandate, constitutional. The mandate, which will now be referred to as a tax, is being upheld as a valid exercise of Congress’s power to tax. This new language as a tax penalty makes it less of a “requirement” for Americans to purchase health insurance, and more of an encouragement. Medicaid expansion has also been upheld by the court; however, states that were not already on board with ACA provisions for expanding coverage will not have to return existing Medicaid funds.

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