On June 28, 2012, the Supreme Court partially upheld the Patient Protection and Affordable Care Act, commonly known as the “Healthcare Reform Act” while declaring the requirement for the states to expand Medicaid unconstitutional as drafted. Specifically, the Supreme Court determined that under the Healthcare Reform Act, Congress’ requirement for the states to increase the Medicaid eligibility to all individuals who have an income at or below 133% of the Federal Poverty Level failed because the states were not provided an opportunity to consent and Congress granted the Secretary of the Department of Health and Human Services (DHHS) the authority to revoke the Medicaid funding to the states who do not expand eligibility. The Supreme Court found the restriction on Medicaid funding exceeded Congress’ authority. Therefore, in order to save the Healthcare Reform Act, the Supreme Court restrained the DHHS Secretary’s authority to withhold Medicaid funding.
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