Limits on Spending Power Seen as Health Ruling’s Legacy

The Supreme Court decision upholding President Barack Obama’s health-care law has drawn attention for limiting Congress’s authority over interstate commerce, yet constitutional scholars say its biggest impact may be a curb on lawmakers’ ability to alter state Medicaid funding.

The justices on June 28 upheld the core of the Patient Protection and Affordable Care Act, which says Americans must have health insurance or pay a penalty. The court ruled that while Congress doesn’t have power under the Constitution’s Commerce Clause to make Americans buy health policies, it can tax people who don’t have coverage.