Obamacare facts overview: A surprising legal twist last week left Obamacare followers dazed and confused. Two adverse decisions came out within hours of each other on Tuesday. Both rulings attempt to interpret a portion of the text within the Affordable Care Act that says tax credits would be available to individuals "enrolled through an Exchange established by the State."
A Supreme Court Obamacare ruling in the hotly contentious Burwell v. Hobby Lobby case was just issued this morning (Monday).
In a 5-4 ruling, the High Court decided that closely held, for-profit corporations can choose to opt out of the Obamacare provisions that require employers to provide no-cost contraceptive prescriptions to employees.
Dow Jones today, June 30, 2014: The Dow Jones Industrial Average was flat on Friday despite a rise in consumer sentiment. This week, look for a heavy slate of economic reports, including the June unemployment report, factory orders, and the ISM manufacturing composite index.
The Supreme Court voted 5-4 in favor of President Obama's controversial healthcare reform law, formally known as the Patient Protection and Affordable Care Act.
The chief and appellate justices upheld the core of the law which has sweeping political and economic ramifications. Many economists, analysts and healthcare experts warn it's a Pyrrhic victory at best.
President Obama and his supporters cheered the landmark healthcare decision - as Republicans reached for an aspirin, an antacid or an analgesic.
While the GOP vows to throw out the law on day one if Mitt Romney wins Election 2012, the ruling does remove some of the dark clouds that have been looming over healthcare stocks. The uncertainty of the law's passage has had many market participants staying away from the sector.
Obamacare Ruling and the Average HouseholdWhat Obamacare means for the average American working family with an annual household income up to approximately $90,000, is that starting in 2014, they will be able to purchase private insurance through new state insurance markets at prices subsidized according to income level.
Mammograms, cancer screenings and other preventative healthcare measures will be available without deductibles or co-pays.
Adult children can remain on parents' health insurance plans until they are 26. Seniors can continue to receive discounts on prescription drugs, and health insurers will continue to pay rebates on premiums not adequately targeted at healthcare services.
In addition, insurers will no longer be able to deny coverage to adults with a pre-existing medical condition and must stop or limit the practice of discriminatory pricing based on gender, age and current health status.
Furthermore, healthcare providers will gravitate away from the conventional fee-for-service approach toward systems that coordinate care.
Just after 10 a.m. EDT word came that the U.S. Supreme Court, in a 5-4 decision, upheld a key provision of the law that requires all individuals to have health insurance.
Starting in 2014, Obamacare, more formally known as The Protection and Affordable Care Act, is set to impose massive penalties (taxes) on young workers, small business and others who choose not to buy health insurance.
The Court is supposed to announce its decision on the Patient Protection and Affordable Care Act, or Obamacare, tomorrow (Thursday).
No matter what the ruling, there will be an immediate pronounced reaction in the markets.
This can already be seen with the movement in insurance company stocks as traders prepare for the Supreme Court action.
After rising 17.2% for 2012, UnitedHealth Group (NYSE: UNH) has fallen 5.8% in market action over the last month. Up 5.2% for 2012, WellPoint Inc. (NYSE: WLP) is down 1.7% for the past five days.
The Supreme Court will likely act in one of four ways for the sweeping healthcare overhaul that was signed into law on March 23, 2010. Let's look at how each of the four Obamacare ruling outcomes could affect the markets.
Since the U.S. Supreme Court is scheduled to announce its Obamacare ruling tomorrow, we wanted to share with you this Q&A session with Keith on what you need to know about the decision.
Keith also shared what he thinks of Facebook stock as the market is flooded with analyst opinions from the underwriting firms.
You can see all of Keith's analysis in the video below.
Q, from "Varney & Co." host Stuart Varney: The Obamacare ruling is imminent. Will insurance companies tank if it's repealed, and how would you trade that?
A, Keith Fitz-Gerald: I can see this going two ways...
1)If it's upheld, insurance companies will make bank, but businesses offering services to small and mid-cap companies that are likely to be hamstrung are going to do better. That includes Paychex Inc. (Nasdaq: PAYX) or Express Scripts (Nasdaq: ESRX), for instance. Both will help small companies spend their healthcare dollars more efficiently.
2)If struck down, big insurance companies will have to retool and restructure as they are the ones that hold the biggest stake in this debate. It's a little late to make that bet today, but when the ruling is announced we'll have some clarity and can make a decision then.