Special Alert: Supreme Court Upholds Health Care Reform Law

SPECIAL ALERT

June 28, 2012

Supreme Court Upholds Health Care Reform Law

In a 5-4 decision, the United States Supreme Court today upheld significant portions of the health care reform law. The court, in National Federation of Independent Business v. Sebelius, upheld the individual mandate in the Affordable Care Act (ACA) as within Congress’ taxing authority in the U.S. Constitution.

The court also ruled that the federal government does not have the authority to withhold existing funds from states that do not choose to comply with new Medicaid eligibility requirements.

In January, the Academy filed an amicus curiae brief with the U.S. Supreme Court on severability, noting that from an actuarial perspective, severing the issue and rating provisions of the Affordable Care Act from the individual mandate will exacerbate adverse selection, leading to lower participation and higher premiums, unless other mechanisms are implemented to help ensure participation by a broad cross section of risks.

For a complete listing of all ACA-related Academy publications, visit http://www.actuary.org/category/site-section/public-policy/health/navigating-health-reform-implementation.

If you have any questions regarding this alert, contact Heather Jerbi, senior health policy analyst (jerbi@actuary.org; 202-223-8196).