SC upholds healthcare law,win for Obama

Supreme Court upheld most of President Obamas health care overhaul law,saying it was authorised by Congresss power to levy taxes.

The Supreme Court on Thursday upheld most of President Obamas health care overhaul law,saying it was authorised by Congresss power to levy taxes. The vote was 5 to 4,with Chief Justice John G. Roberts Jr. joining the courts four more liberal members.

The decision was a victory for President Obama and Congressional Democrats,affirming the central legislative pillar of Obamas presidency. The ruling upheld the so-called individual mandate,which requires that nearly all Americans obtain health insurance or pay a penalty.

The Affordable Care Acts requirement that certain individuals pay a financial penalty for not obtaining health insurance may reasonably be characterised as a tax, Chief Justice Roberts wrote in the majority opinion. Because the Constitution permits such a tax,it is not our role to forbid it,or to pass upon its wisdom or fairness.

The justices rejected the argument the administration had pressed most vigorously in support of the law,that its individual mandate was justified by Congresss power to regulate interstate commerce. The vote was again 5 to 4,but here Chief Justice Roberts was joined by the courts four more conservative members.

The court did substantially limit a major piece of the law,one that expanded Medicaid,the joint federal-state programme that provides healthcare to poor and disabled people. Seven justices agreed that Congress had exceeded its constitutional authority by coercing states into participating in the expansion by threatening them with the loss of existing federal payments.

The courts ruling,seen as one of the most significant in decades,is a crucial milestone for the law,allowing almost all of its far-reaching changes to roll forward. Several of its notable provisions have already been put in place in the past two years,and more are imminent.

Ultimately,it is intended to end the United States status as the only rich country with large numbers of uninsured people,by expanding both the private market and Medicaid.

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The law was challenged by 26 states,with the individual mandate the most contested issue.

The ruling and what it means

The decision

The US SC upheld the constitutionality of the Obamas healthcare law,including the most disputed part: the mandate that virtually all Americans have health insurance or pay a fine.

THE CONTEXT

The law is Obamas signature legislative achievement. Polls show a majority of Americans do not support the overhaul,which,ironically,was based on a plan put in place in Massachusetts when Romney was governor.

How many covered

The 2010 healthcare law will continue phasing in as planned. Its expected to bring coverage to about 30 million uninsured people,so that over 9 in 10 eligible Americans will be covered.

SOME BENEFITS

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Young adults can stay on their parents insurance up to age 26. Insurers cant deny coverage to children with health problems. And Medicaid will be expanded to more low-income people.

WHATS IN it

Starting in 2014,almost everyone will be required to be insured or pay a fine. There are subsidies to help people who cant afford coverage. Most employers will face fines if they dont offer coverage for their workers.

IS the ISSUE SETTLED

Not necessarily. The law still could be changed by Congress. Romney and Republican congressional candidates are campaigning on promises to repeal it if elected in November.

IMPACT ON POLLS

The electorate has been highly polarised over the issue for years. For Obama,the ruling gives him a new campaign argument to make for re-election to prevent Republicans from hindering the law in Congress. But the ruling also has the potential to re-energise the Tea Party,born out of opposition to the healthcare law.