In a 110-page decision issued today, the Supreme Court upheld the individual mandate in the health care law. In a 5-4 decision, the Court relied on the federal government’s power to tax. Chief Justice Roberts had indicated it would have been struck down had the argument relied solely on the commerce clause of the Constitution.
As a result, most Americans will be required to purchase health care insurance beginning in 2014. Non-exempt taxpayers who fail to do so will face a penalty. In 2014, the penalty will be the greater of $285 or 1% of income per family. Adults up to age 26 may remain on their parents’ health care plans. The ability of insurers to exclude pre-existing conditions is also severely limited. In 2013, Flexible Spending Accounts will be limited to $2,500 per year, reduced from current annual limits of $5,000.
Business owners with more than 50 full time employees will be required to provide health insurance for employees. If they fail to do so, they will be penalized.
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