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Striking individual mandate poses potential employer challenges

After hearing oral arguments regarding the constitutionality of health care reforms individual mandate, the Supreme Court justices are to decide whether the bill should be left alone, partially overturned or struck down in its entirety, says Jennifer Kraft, one of the lawyers who presented oral arguments to the Supreme Court...

By Amanda McGrory-Dixon | Updated on March 30, 2012

After hearing oral arguments regarding the constitutionality of health care reform’s individual mandate, the Supreme Court justices are to decide whether the bill should be left alone, partially overturned or struck down in its entirety, says Jennifer Kraft, partner at national employment law firm Seyfarth Shaw in Chicago.

If the Supreme Court rules that the individual mandate is unconstitutional but leaves the rest of the bill intact, this could negatively impact employers, Kraft says. By overturning only part of the bill, an unbalanced system would be left functioning as it was not designed, which could create even more problems. This is especially true for employers that decide to move to the exchange system in 2014 because fewer participants would be in the market for health insurance.

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