Medicaid

With the Supreme Court ruling on President Barack Obama's healthcare reform law just three weeks away, investors in healthcare stocks need to be prepared.

While some are confident the Supreme Court will rule in favor of the Patient Protection and Affordable Care Act, a rejection of the law -- or at least of the mandate requiring everyone to buy insurance -- may be more likely.

If so, Obamacare could be toast.

Based on tough questioning from moderate Justice Anthony Kennedy in Supreme Court hearings in March, the odds of that happening are rising. In close cases, Kennedy is often the swing vote.

At InTrade - where people can bet on the outcome of real world events -the probability of Obamacare being overturned has risen to about 70%.

So what would happen to healthcare stocks if Obamacare was overturned?

Surprisingly, it is less than you'd think.

In fact, most healthcare stocks will benefit simply by having a definitive answer on the fate of the law. A decision would lift the uncertainty hanging over the sector since Obamacare passed in 2009.

"Coming off the market lows of 2009, you saw multiple expansion in virtually every sector of the S&P 500, but very little in health care," Eddie Yoon, Fidelity Investment's top health-care analyst, told Barron's.

Still, some healthcare stocks would gain more than others if Obamacare gets torpedoed. And a few could get a little dinged.