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Supreme Court Upholds the Constitutionality of Affordable Care Acts Individual Mandate: Implications for Employers and Group Health Plan Sponsors

The U.S. Supreme Court held today that the Patient Protection and Affordable Care Acts (the Acts) requirement, effective beginning in 2014, that individuals either purchase health insurance or pay a penalty to the federal government was constitutional under Congress power to assess and collect taxes. While the Acts long-term prospects remain uncertain to due to the November election and the presidential and Congressional changes that it might bring, the Courts decision means that the Act will remain in effect for the foreseeable future. Accordingly, employers that sponsor group health plans should continue with their efforts to comply with the Acts requirements. This Client Alert outlines key provisions of the Act that have compliance dates in the near future.

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