US Supreme Court will review the effectiveness of the mandatory purchasing of health insurance ‘The Affordable Care Act’ by the US citizens, a new law signed by the US president.

The law, under which the people of US will have to buy health insurance by 2014 or pay a tax penalty, has been challenged by 26 of the 50 US states, arguing that Congress exceeded its constitutional power and argued that the government should not interfere and force citizens to pay for a product they have opted against.

Under the terms of the 2010 healthcare revamp, an individual’s annual tax form will record the penalty for refusing to buy insurance which will be collected by the Internal Revenue Service.

The US administration counters that virtually every person will need medical care and those who refrain from insurance put an inconsistent burden on the system.

The new health care reform would also reduce premium costs for older or sicker individuals since younger, healthier people would start to buy policies.

According to an study, annual healthcare spending in the US, sums up $2.6 trillion, about 18% of the annual gross domestic product, or $8,402 for every man, woman and child.

A decision is expected by late June this year by the US Supreme Court and the verdict will be of high importance as it will dictate the government’s constitutionality of the individual insurance requirement.

By 2019, nearly 95% of the US citizen will have health insurance if the law is allowed to take full effect, the Congressional Budget Office estimates.