US hospital stocks are most at risk from the latest ruling, and could be down materially, according to Jefferies health-care strategist Jared Holz.
Klobuchar says the ruling Friday by the Texas judge contradicts the 2012 ruling by the U.S. Supreme Court that upheld the constitutionality of the Affordable Care Act. The law also protects people with pre-existing conditions and allows people up to age 26 to be covered under their parents' insurance; requires calorie counts at restaurants and gives protections to lactating mothers.
This Oct. 23, 2018 file photo shows the HealthCare.gov website on a computer screen in NY.
The White House applauded O'Connor's ruling, but said the law remains in place while appeals proceed. In fact, the Supreme Court has twice upheld the law as constitutional in both 2012 and 2015. The process will take months at a minimum, even with the states pressing for a speedy resolution because of the uncertainty O'Connor's ruling creates and the potential effects on the insurance markets.
Texas District Judge Reed O'Connor agreed with a coalition of 20 states that a change in tax law previous year eliminating a penalty for not having health insurance invalidated the entire Obamacare law. Congress reduced that penalty to zero as part of the tax legislation it passed and President Donald Trump signed in 2017.
Now, this could be a serious problem for people who buy their health insurance from state exchanges as well as those on Medicare and Medicaid.
Judge O'Connor reasoned that because the individual mandate will no longer collect revenue, it is no longer considered a tax. The individual mandate is unconstitutional, but the other provisions are just expensive and bad policies. "Millions of people now rely on ObamaCare's subsidies and rules, which argues against judges repealing the law by fiat", the editorial board said. And a number of states, led by California, are already lining up to appeal the decision.
- The prohibition on insurers charging higher premiums to people with health problems. All insurance plans are still required to provide a basic standard of benefits without lifetime caps as the law states. "That's what I'd like to see us do this next year".
What is Plan B if the entire law is struck down?
"Yes, there are things to do, but we should be working to improve the Affordable Care Act, not just throw it out and set it on fire", Klobuchar said. Angus King, Collins also declined to speculate on the outcome of investigations into President Trump's conduct and presidential campaign finances, but she reiterated that it is important that the Robert Mueller investigation continue.
The HealthCare.gov website is photographed in Washington, Wednesday, Oct. 31, 2018.
Since the law's formative stages amid concern about millions of Americans lacking health insurance, Republicans have opposed Obamacare, calling it a costly and unneeded government intrusion into Americans' lives.
How disruptive will it be if the courts abruptly eliminate Obamacare? FAH believes this ruling would have a devastating impact on the patients we serve and the nation's health care system as a whole.
The Minnesota Democrat said she expects a court fight that will end with the ACA being upheld. If you have a pre-existing condition, you could be denied insurance or have to pay more for your coverage. "His administration has done good work revising regulations to reduce health-care costs and increase access, but the risk is that the lawsuit will cause Republicans in Congress to panic politically and strike a deal with Democrats that reinforces Obamacare". Meanwhile, America's health care industry has expressed trepidation about what's likely to be a very uncertain road ahead. "More uncompensated care with more uninsured; completely upending Medicare payment systems changed by the ACA; repeal of tax increases that funded the ACA; No more employer mandate".