Final answer:
The U.S. Supreme Court's ruling in National Federation of Independent Business v. Sebelius upheld the individual mandate of the PPACA as a tax, allowing the provision under Congress's power to tax, while also ruling that the federal government cannot cut off all Medicaid funds to states that refuse the expansion.
Step-by-step explanation:
National Federation of Independent Business v. Sebelius (2012)
In National Federation of Independent Business v. Sebelius (2012), the U.S. Supreme Court addressed two key provisions of the Patient Protection and Affordable Care Act (PPACA): the Medicaid expansion and the individual mandate. The challenge, brought by several states, contended that these provisions were unconstitutional. The Court's decision was split, 5-4, determining that while the Medicaid expansion was constitutional, the federal government could not rescind all Medicaid funding from states that opted out of the expansion. The individual mandate, which requires citizens to purchase health insurance or pay a penalty, was upheld under Congress's power to levy taxes.
Consequently, this ruling preserved the core of Obamacare, emphasizing congressional taxing power. The decision played a significant role in U.S. healthcare policy, impacting not only patients and providers but also sparking significant debate and subsequent political actions against the ACA.