New Court Rules Individual Mandate Unconstitutional

An appeals court has ruled that a portion of the Patient Protection and Affordable Care Act (PPACA, also known as the federal healthcare law) is unconstitutional. The specific provision cited as violating Constitutional principles is the rule directing that all legal residents purchase health insurance (with limited exceptions), or pay a penalty.

Although the U.S. Supreme Court has final authority to select the cases it will review, this newest decision should ensure that the highest court does step in to make a final determination because only a Supreme Court ruling will resolve the different Appellate rulings around the nation. Timing for when the Court may agree to hear the case is yet unknown. The Supreme Court may hear the case and issue a decision next year, or it may wait until 2014 when the individual mandate takes effect.


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