Individual Mandate of Affordable Care Act Upheld

Issued June 28, 2012

On June 28, 2012, the U.S. Supreme Court upheld the constitutionality of the individual mandate in the 2010 Affordable Care Act (ACA), commonly known as the Health Care Reform law. The individual mandate provision requires that, effective January 1, 2014, most U.S. citizens and legal residents must purchase health insurance or pay a penalty. With this ruling, a key provision of the ACA has been upheld.

Consequences of Ruling
Individuals, businesses, and representatives of the health care and health insurance industries must continue to comply with enacted regulations of the ACA and prepare for provisions that will be implemented over the coming months and years.

Although the individual mandate has been upheld, uncertainty continues around the implementation of the next series of Health Care Reform provisions. Affected parties, including states and health insurance companies, may still request modifications to particular aspects of the law and an extension of implementation deadlines.

We will continue to keep you informed about the development of new insurance coverage options, and will work with you to provide solutions tailored to meet your business needs.