ACA News & Publications

Health Care Reform – U.S. Supreme Court Upholds Constitutionality of Entire Act

June 28, 2012

In 1789, Benjamin Franklin wrote, "In this world nothing can be said to be certain, except death and taxes."

As we review today’s U.S. Supreme Court’s landmark decision upholding the constitutionality of the Patient Protection and Affordable Care Act (PPACA) (aka Health Care Reform), that statement from Benjamin Franklin describes the Court’s ruling in a nutshell. On the biggest issue, the constitutionality of the individual mandate, the Court, in upholding the mandate, said that the penalty for not carrying insurance is a tax and therefore falls within Congress’ taxing power.

What Does This Ruling Mean To Your Organization

Healthcare reform (and the requirements of the PPACA) in its present form is here to stay for employers. More specifically it means:

  • All of the decisions you made and provisions that you implemented to date remain intact;
  • You will want to continue implementing the 2012/13 requirements, including the W‐2 reporting requirements and Summary of Benefits and Coverage;
  • It’s time to start planning for the impact of the future provisions as well as the financial impact of healthcare reform on your organization.

With today’s ruling, the Burnham Benefits’ Account Support teams will continue to take a proactive approach to ensure that you understand the impact of healthcare reform on your organization, including effective implementation and communication of each of the provisions.

It will be critical for you to develop and analyze the short‐term and long‐term financial impact of the PPACA on your respective organization. This will provide an opportunity to not only understand the specific costs associated with offering health insurance but a chance to proactively mitigate and reduce potential cost increases through new employee benefit program strategies.

This means that we will continue on the course that was laid out several years ago, including your requirements under healthcare reform and cost mitigation strategies. As you may be aware, we have developed a proprietary financial modeling tool that will allow you to achieve these results.

For More Information
For more information about this ACA Pathways or about any other health care reform-related provisions, please contact your Burnham Benefits consultant or Burnham Benefits at:

Burnham Benefits

This ACA Pathways is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice.

The information contained in this ACA Pathways includes emerging health care news from a limited perspective and does not encompass all views. The information was selected from a wide range of sources selected on the basis of their potential impact on employers and/or their employee benefit plans. For more information, please contact Burnham Benefits.

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