The Influence of Healthcare Reform on Commercial Real Estate

The Patient Protection & Affordable Care Act (PPACA), commonly referred to as the Affordable Care Act and otherwise known as “Obamacare” or healthcare reform, was signed into law by President Barack Obama and became effective. This legislation represents the most significant overhaul of the U.S. healthcare system since the passage of Medicare and Medicaid in 1965. PPACA provisions have been the subject of both controversy and litigation challenging the act’s constitutionality. In due course, the Supreme Court upheld the act, thereby also making the tax provisions of the act a reality. When the Affordable Care Act takes full effect, it will prohibit discrimination due to preexisting conditions or gender, eliminate an annual limit on insurance coverage, provide coverage for individuals participating in clinical trials, provide tax credits for many, including small businesses, establish health insurance exchanges, increase access to Medicaid, and promote individual responsibility and free choice.