Last week, the Supreme Court ruled not to throw out the health care reform which was passed over two years ago. Two major issues were being watched by many people. The first one, was the Medicaid expansion and the qualifications to get insurance through Medicaid. And the second, was whether or not the individual mandate was constitutional. The Supreme Court ruled that the mandate is constitutional and that they will enforce the mandate as a tax. The original pitch and what was Obama’s selling point, was that the mandate would be penalized as a fee not a tax. So this decision is huge and can have some falling out by supporters of Obama. Anyone who does not health insurance by 2014, will pay $95 or 1% of their income, which ever is greater. The figures go up if you have a family that is not covered. Also, if you still do not have health insurance by 2016, the tax will go up to 2.5%.
So the question here is, will people that are healthy still go without health insurance and pay the tax. Or, is the tax enough to make them change their behaviors. Most likely, the former because it still is a lot cheaper to pay the tax then pay the monthly premium on a health insurance policy. Another issue will be how each state will proceed with implementing the health insurance exchanges by 2014. Still, there are 26 states that are opposed to the ruling and it will be a challenge for the federal government to manage the exchanges without support on the state level.