National Federation of Independent Business v. Sebelius (2012)

1) Link to the Actual Opinion
Read the U.S. Reports opinion (PDF)

2) Summary of the Opinion
The Affordable Care Act (ACA) required most Americans to purchase health insurance or pay a penalty. Opponents argued it exceeded Congress’s power under the Commerce Clause. The Supreme Court ruled that the mandate was unconstitutional under the Commerce Clause but upheld it as a valid exercise of Congress’s taxing power. The Court also struck down the mandatory expansion of Medicaid as coercive, making it optional for states.

3) Why It Mattered
This case saved the ACA (Obamacare) but reshaped federal power. It limited the Commerce Clause, broadened the use of the taxing power, and put new constraints on Congress’s ability to pressure states.

4) What It Provided or Took Away

• Provided: Legitimacy for the ACA’s individual mandate under taxing power.
• Took Away: Broad interpretations of the Commerce Clause that could justify mandates on inactivity.
• Took Away: Federal leverage to force states into Medicaid expansion.

5) Overreach or Proper Role?
The Court split the baby: critics saw it as rewriting the law to save it, while others praised it as a balanced check on federal power.

6) Plain-English Impact Today
The ACA survived and millions gained healthcare coverage. But the Court drew new lines on what Congress can do under the Commerce Clause versus its taxing authority.

• Healthcare
• Commerce Clause
• Taxing Power
• Medicaid Expansion