The Patient Protection And Affordable Care Act ( Ppaca )

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With the establishment of the Patient Protection and Affordable Care Act (PPACA), more and more Americans are able to have access to the healthcare, but roadblocks have occurred in the road to get there. After the signing of the bill into law, about 26 states filed a lawsuit in the setting of a federal court. This was done to challenge the constitutionality of the individual mandate (individuals must possess a minimum level of health insurance or face financial penalties) and the Medicaid expansion (individuals earning less than 133% of the poverty-level baseline are eligible for Medicaid). The Medicare expansion is optional, however, as of current, all the states are participating in it. The federal court had decided to determine is the two provisions of the bill were unconstitutional or not and if it is right for other courts to rule on the constitutionality of the Affordable Care Act. On the basis of this, the Supreme Court decided that the individual mandate is a constitutional exercise of Congress to lay tax plans out. This decision was unexpected by many, as lower courts believed the opposite of the mandate. The court ruled in favor on the basis of three factors, which were Americans eventually have to pay less for the penalties rather than the price of insurance, the mandate provision does not turn on an individual if they do not purchase insurance and it does prohibit the IRS from collecting the payments through punitive means such as criminal prosecution. These
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