US Supreme Court upholds Affordable Care Act

by Mindy Aguon

Guam - In a much anticipated decision today the United States Supreme Court upheld a mandate in the Affordable Care Act mandating that all Americans buy health insurance.  The mandate was the key component of President Barack Obama's healthcare reform measure that has been the center of controversy and debate for months.

The Supreme Court determined that congress had the power to pass the healthcare reform because they it has the power to tax. A provision that allows children to stay on their parents' insurance plans until they are 26 was upheld as well, but the high court struck down a provision that sought to expand Medicaid by requiring states to offer more coverage to the poor.

Across the nation and on Guam those in the healthcare industry and insurance companies are taking a closer look at the ruling.  NetCare Health Plan administrator Jerry Crisostomo says the ruling has a significant impact on Guam since the Supreme Court ruled that the Affordable Care Act is upheld under the Internal Revenue Service code or tax clause of the U.S. and not under the commerce clause.  This means individual and employer mandate may be applicable to Guam. 

"It is our position that the individual and employer mandate does indeed apply to Guam and we are in full support of this requirement since NetCare as well as other local insurance companies are required to comply with the various mandates of the law.  To offset the significant costs of these mandates, it only makes sense to require individuals and employers to purchase health insurance coverage," Crisostomo stated. 

Calvo's SelectCare health plan administrator Frank Campillo meanwhile says law poses challenges for Guam and it is not clear whether if the U.S. Treasury or the Guam Treasury will pay for the insurance subsidies that could be significant.  Campillo stated, "The impact of paying for such subsides could be significant and possibly financially crippling for GovGuam." 

Both companies agree that there must be more clarity on the Supreme Court's ruling and its impact to Guam.  Crisostomo says the Guam insurance or tax commissioner and the attorney general will have to issue opinions on its applicability.