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The Decision: Supreme Court’s Ruling on Obamacare

by Melissa Rager

In what is considered to be the most important Supreme Court decision since Bush v. Gore in 2000, the Supreme Court is set to announce the fate of the Patient Protection and Affordable Care Act  (or more informally known as Obamacare) this Thursday, June 28th at 10:00 a.m. 

The act is a politically divisive issue on whether or not the government can mandate that individuals purchase health insurance.  It also has several tax implications, some of which have already been implemented and others that will take effect in 2014.  The Supreme Court’s ruling will, in essence, determine whether or not the tax piece of the legislation will stand.

There are four likely outcomes:

  • The entire law will be upheld
  • Only the individual mandate will be struck down, but the rest of the provisions of the act will be upheld
  • The individual mandate will be struck down along with the provisions requiring insurers to provide coverage to individuals with preexisting conditions
  • The entire law will be struck down

If the second or third scenario happens, there is expected to be a lengthy debate in Congress about what the decision means with respect to the rest of the law as well as whether the revenue (tax) side will need to be reworked since the individual mandate is a key piece in the funding of legislation.

If the fourth scenario happens, then all of the tax increases, deductions, and credits are thrown out the window, but the debate about health insurance reform will be far from over.

Stay tuned.

This entry was posted in Audit & Tax Talk and tagged Accounting. Bookmark the permalink.

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