National Federation of Independent Business v. Sebelius 2012

This Supreme Court case ruled that it was constitutional for Congress to enact most of the elements of the Patient Protection and Affordable Care Act, known as Obamacare. This included the requirement for Americans to have health insurance by 2014.

Background to the Case:

The Affordable Care Act was signed into law in March 2010 and almost immediately organisations immediately challenged the Act on the grounds that it was unconstitutional. The case itself is an amalgamation of a number of cases all along a similar theme. The first court proceedings occurred when the State of Florida challenged the Department for Health and Human Services over the law in the District Court. In 2011, the Law was struck down on the grounds that the imposing of a ‘shared responsibility penalty’ was unconstitutional. However, the entire law was struck down as this provision could not be removed from the Act.

The Department appealed the ruling in the Eleventh Circuit, whereby the Court affirmed the District Court’s decision, except that it believed the two parts could be separated. Unhappy with the outcome the Department filed for the case to go before the Supreme Court.

The case:

The case was heard over three days in March 2012. Arguments were heard on issues surrounding the constitutionality of the Act, and whether or not if fell under Congress’ responsibility. The Court was split over the final ruling and relied on Chief Justice John Roberts to swap to the majority in order to protect the Act. In a decision the Court ruled that Obamacare is constitutional as the mandate that all Americans purchase health insurance is akin to a tax, and as such this comes under the powers of Congress.