Individual Mandate

The “individual mandate” or requirement that every individual purchase an insurance policy or be penalized was determined to be unconstitutional how it was written into the law under the Commerce Clause and the Necessary and Proper Clause. The reason for this is that they determined it is outside of the congressional role to regulate the mandate as interstate commerce and could potentially allow Congress to make more sweeping regulations on behavior by imposing severe penalties. The Supreme Court decided that the “individual mandate” is constitutional when reclassified as a tax because the penalty then is restricted to a fee or monetary tax payable to the government.