Our valued clients and friends,
In a 5-4 decision authored by Chief Justice Roberts, the Supreme Court upheld the Affordable Care Act (ACA) and found that the individual mandate provisions of the ACA were constitutional as a tax. The decision does not change our commitment to continue to build and deliver solutions that help improve quality and health outcomes, making care more affordable and convenient for our clients and their employees. At the same time, we recognize that the Affordable Care Act did not do enough to address the serious challenges facing our healthcare system, and we need to fix the problems that remain.
We will continue to keep our focus on compliance with the law. We have been, and will continue to be, ready to meet the requirements of the law as we work to address the complex and challenging issues that confront our healthcare system. Today's decision does not impact the previous reforms you implemented, or those we are working on with you, such as the Summary of Benefits and Coverage, Women's Preventive Coverage and the W-2 reporting obligation. We are committed to working with you to bring about solutions that will make your healthcare plan work better for everyone.
We realize there has been a lot of discussion surrounding the individual mandate, but the ruling makes it clear that the individual mandate is constitutional. Since the individual mandate does not go into effect until 2014, we have time to evaluate this ruling further. We will communicate with you accordingly on future changes that are needed to remain in compliance with the Affordable Care Act.
With the exception of the limitation on the federal government's authority to withhold Medicaid funding, all provisions of the ACA stand and compliance efforts likely will move ahead at full speed. In preparation for the major coverage expansion to occur under the ACA in 2014, the Administration is expected to release a host of regulations dealing with the definition of minimum essential coverage, employer coverage and reporting requirements, and an array of new taxes and fees. Clients should be aware of provisions of the law set to take effect in 2013 and 2014, including those listed in the table below.