President Barack Obama signed $940 billion health-care legislation into law Tuesday after the House of Representatives passed the Senate's version of the reform bill Sunday night, by a 219-212 margin.

The law will expand eligibility for Medicaid, enabling an estimated 32 million Americans to get health insurance, and provide subsidies for people of low-to-moderate income to buy insurance.

Individuals and small businesses could purchase insurance through state-based exchanges, which would offer plans that meet minimum federal standards. Some small businesses with low-wage workers would be eligible for temporary tax credits to help them pay for insurance.

Individuals would be required to obtain insurance, and businesses that employ more than 50 workers would have to provide coverage or pay a penalty of $2,000 per worker if any of their employees receives government-subsidized coverage on their own.

The legislation also would impose a tax on high-cost insurance plans beginning in 2018. New taxes also would be imposed on insurance plans, medical-device manufacturers and pharmaceutical companies. Individuals who make more than $200,000 would face additional Medicare payroll taxes.

Insurance companies would no longer be able to deny coverage for pre-existing conditions or rescind coverage when someone gets ill. They also would be prohibited from capping the amount of benefits individuals can receive.