Employers could be liable for stiff financial penalties as a result of a portion of the U.S. Supreme Court's health care reform law ruling that invalidated massive federal sanctions against states that fail to expand eligibility for their Medicaid programs.
In addition, the Medicaid part of the ruling could result in a much smaller reduction in the number of uninsured U.S. residents compared with earlier projections, according to estimates by the Congressional Budget Office.
If those projections hold true, the effect of one of the big positives of the Patient Protection and Affordable Care Act for employers—a reduction of uncompensated care costs, which providers now shift to employer health plans—could be much smaller than employers had hoped.