On June 28, 2012, the Supreme Court of the United States resolved more than two years of litigation over one of the most hotly contested acts of Congress, definitively upholding virtually all of President Obama’s signature domestic policy achievement, the Patient Protection and Affordable Care Act (PPACA). The Supreme Court concluded that the “individual mandate” requiring all Americans to have health insurance or pay a penalty was within Congress’ taxing authorities, if not within its power under the Commerce Clause of the Constitution. However, the Supreme Court also invalidated a provision empowering the Secretary of the U.S. Department of Health and Human Services (HHS) to withhold all federal Medicaid funds from states that choose not to expand Medicaid as prescribed under the law.

This long-awaited decision has profound implications for the U.S. health care industry—providers, payors, products companies— and employers. This White Paper assesses the decision and provides guidance for the U.S. health care industry in the immediate aftermath. For additional insights, please also view our webcast, “Health Care in the High Court: The Supreme Court Decision,” which was held June 29, 2012. On the webcast, a panel of constitutional and health industry legal and political analysts discuss some of the more important implications of this landmark decision.