• 5-4 Supreme Court Upholds the Affordable Care Act, Rules the Individual Mandate a Constitutional “Tax”
  • July 5, 2012 | Authors: Kathy Hirata Chin; Jared L. Facher; Brian T. McGovern; Karen E. Woody
  • Law Firms: Cadwalader, Wickersham & Taft LLP - New York Office ; Cadwalader, Wickersham & Taft LLP - Washington Office
  • Speaking for the 5-4 majority in National Federation of Independent Business v. Sebelius, U.S. Supreme Court Chief Justice John Roberts, joined by Justices Ginsburg, Breyer, Sotomayor, and Kagan, held that the most hotly contested provision of the federal Patient Protection and Affordable Care Act, the Individual Mandate, was a proper exercise of Congress’s taxing power under the Constitution. The Supreme Court did not uphold it under the Commerce Clause, the principal ground advanced by the Obama Administration in defense of the constitutionality of the statute. The Court also found the expansion of the Medicaid program to be constitutional under the Spending Clause so long as the federal government does not bar states from continuing to participate in the existing Medicaid program on condition that they agree to the expanded coverage.