The Supreme Court ruled in 2012 that Congress couldn't change Medicaid rules to require states to expand programs, citing the importance of judicial review and Congress's authority to establish health care programs.
The Supreme Court ruled in 2012 that Congress could not change the rules of Medicaid and require states to expand programs. In the case National Federation of Independent Business v. Sebelius, the Court decided that while Congress could apply the mandate to purchase health insurance under its enumerated power to tax, it could not force states to expand Medicaid by withholding all their existing Medicaid funding.
Judicial review allowed the law's critics to challenge the constitutionality of the Affordable Care Act, ultimately resulting in the Supreme Court upholding the law based on Congress's power to tax.
Congress's authority to establish government-funded health care programs like Medicare and Medicaid is derived from its power to "make all Laws which shall be necessary and proper" to provide for the general welfare.
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