The Patient Protection and Affordable Care Act:
How does it affect Employees and Employers?
As most of you know, President Obama signed the Patient Protection and Affordable Care Act on March 23, 2010. This Act contains sweeping changes as to how healthcare is administered and paid for in this country. Regardless of your political views, it’s important to understand how certain provisions of the Act will affect you.
The Supreme Court rules
Shortly after the Act was passed, the National Federation of Independent Businesses filed a lawsuit, challenging the Act on constitutional grounds. Notably, the Act contains a mandate that all Americans purchase health insurance or face a financial penalty. On June 28, 2012, the Supreme Court affirmed the Act in its entirety and held that the financial penalty imposed on those without health insurance is the equivalent of a tax, and that Congress has broad powers to assess and collect taxes.