Health Care Reform Law Alert: Individual Mandate Stands; Medicaid Expansion Narrowed

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This morning, the United States Supreme Court largely upheld the Patient Protection and Affordable Care Act ("PPACA"), including the individual mandate. Under the Court's ruling, PPACA requirements for employers and individuals that are currently in place, as well as those slated to take effect in the coming years, remain valid law.

This means that employers should continue to comply with all of the health care requirements currently in effect and continue preparing to comply with upcoming requirements in 2013, including distribution of Summaries of Benefits and Coverage, W-2 reporting, and the $2,500 limit on health flexible spending accounts.

The Court also held that Congress may not require states to significantly expand their Medicaid programs. However, at this time, its ruling on this issue should not directly affect PPACA requirements pertaining to employers and individuals.

While it is unclear how Congress will respond to this decision, a congressional response is not expected prior to the November 2012 elections. We will keep you updated on any congressional response to the Court's decision.

For more information on how the PPACA will affect you, please contact a member of the Stoel Rives Employee Benefits or Healthcare team.

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