Today in a landmark decision, the United States Supreme Court decided that the Patient Protection and Affordable Care Act (PPACA) is constitutionally permissible. In a closely divided 5 – 4 decision, the Court ruled that the so-called “individual mandate” was constitutional as a tax.
Based upon the Court’s ruling, the PPACA will continue. Although some of the provisions are already in effect, many more become effective in 2014. Accordingly, employers should proceed with implementing PPACA’s reforms. For instance, employers with more than 50 full-time equivalent employees in 2014 will be required to provide “minimum essential coverage” to all full-time employees and their dependents, or pay a penalty.
We will continue to closely monitor the PPACA and expect more developments regarding this law.