It is a penalty rendered under Congress' taxing authority, is it not?
In order to penalize you for not following the law, Congress has to have the power to create the law that creates the requirement in question.
The Court said that Congress does not have the power to compel people to buy insurance, and therefore cannot have the power to penalize you for failing to do so.
Here was the opinion:
Chief Justice Roberts wrote for the majority (also consisting of Justices Kagan, Sotomayor, Ginsburg, and Breyer) that the individual mandate is constitutional as a tax.
OPINION EXCERPT:
Under the mandate, if an individual does not maintain health insurance, the only consequence is that he must make an additional payment to the IRS when he pays his taxes. That
means the mandate can be regarded as establishing a condition not owning health insurance that triggers a tax the required payment to the IRS. Under that theory, the mandate is not a legal command to buy insurance. Rather, it makes going without insurance just another thing the Government taxes, like buying gasoline or earning income [emphasis added].'
Westlaw Insider | Blog | In health care ruling, Roberts gives Congress broad Taxing Clause powers