Yesterday, the Supreme Court issued its much-anticipated decision on the Patient Protection and Affordable Care Act (ACA). Most notably, the Court has upheld the constitutionality of the individual mandate under Congress’s taxing power. Accompanying this alert is an analysis provided by our Appellate Litigation colleagues that describes in detail the Court’s decision, including the limits it places on the ACA’s Medicaid provisions. This alert will focus on the decision’s impact on employers.

By upholding the mandate and, for all intents and purposes, the ACA as a whole, the decision eliminates one layer of uncertainty for employers about the many group market reforms and administrative requirements that are already in effect or about to take effect. Importantly, it enables employers to focus on planning for upcoming open enrollment periods and implementation of the Act’s various requirements without concern that their efforts will be for naught. Following yesterday’s ruling, employers should continue with plans to implement all of the ACA’s administrative requirements (e.g., issuing the Summary of Benefits and Coverage and reporting group health plan value on each employee’s W-2) as well as certain plan design changes (e.g., capping employee contributions to a health FSA at $2,500 per year).

Please see full alert below for more information.