In National Federation of Independent Business v.Sebelius (2012),the Supreme Court ruled that states did not have to expand their Medicaid coverage because

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The Supreme Court ruled that the provision in the Affordable Care Act that required states to expand their Medicaid coverage was unconstitutional because it left the states without a genuine choice. The Court held that the provision was unduly coercive and violated the principle of federalism by threatening states with the loss of all their Medicaid funding if they did not comply with the expansion. Therefore, the states were not required to expand their Medicaid coverage if they did not want to.

In National Federation of Independent Business V