Following months of uncertainty about the fate of the Affordable Care Act (ACA), yesterday the Supreme Court upheld the health care reform law, including the individual mandate that requires most Americans to purchase health insurance.
However, the Court did elect to limit the federal government’s ability to withhold funds from states for failing to expand Medicaid. It ruled that existing federal Medicaid funds cannot be taken away. As a result, expanding Medicaid eligibility for citizens up to 133% of the federal poverty level is now effectively optional for states. This will likely limit the degree to which the law expands access to health insurance as many states have already indicated they will opt out of the expansion.
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