Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member Latest Breaking News General Discussion The DU Lounge All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search
 

Purveyor

(29,876 posts)
Wed Mar 4, 2015, 01:45 PM Mar 2015

Hospital Stocks Surge After Justice Kennedy Criticizes Obamacare Challenge

Source: Bloomberg

(Bloomberg) -- Tenet Healthcare Corp. and HCA Holdings Inc. led a rally among hospital companies as a Supreme Court challenge to Obamacare’s insurance subsidies drew questions from a pivotal justice.

Anthony Kennedy, who is often a swing vote in important cases, said Wednesday there is a “powerful” point to the Obama administration’s argument that the health-care law would fall apart if the subsidies were ruled unlawful.

“There is a serious constitutional problem,” Kennedy said, if the court rules for the challengers’ attack on tax credits designed to help people afford insurance.

--clip
U.S. hospital companies and health insurers face the highest corporate stakes in the Supreme Court arguments, after benefiting from the law’s initial implementation. Since the law’s 2010 signing, health insurers like Anthem Inc. and UnitedHealth Group Inc. are trading near all-time highs, and the hospital companies have also rallied.

Read more: http://www.bloomberg.com/news/articles/2015-03-04/top-court-s-obamacare-ruling-raises-risks-to-hospitals-insurers

10 replies = new reply since forum marked as read
Highlight: NoneDon't highlight anything 5 newestHighlight 5 most recent replies

still_one

(92,454 posts)
1. no question about it, if the SC invalidates the subsides it will adversely affect healthcare stocks
Wed Mar 4, 2015, 01:49 PM
Mar 2015

and probably carry the market with them.

Still I think it is very uncertain to predict what the court will decide based on their questions





jwirr

(39,215 posts)
3. And states that refused to join ACA already have a problem with hospitals that are going under. It
Wed Mar 4, 2015, 01:59 PM
Mar 2015

will only get worse if they overturn this idea.

lark

(23,168 posts)
2. Excellent!!!
Wed Mar 4, 2015, 01:53 PM
Mar 2015

Kennedy is the weather vane of the SCOTUS and is very often the deciding opinion. Hope he wasn't just playing us and really does see the big problems ruling against the ACA subsidies would cause.

 

Elmer S. E. Dump

(5,751 posts)
4. They have to look like they are on the side of the nutbaskets
Wed Mar 4, 2015, 02:39 PM
Mar 2015

Then when they make their decision, its: We looked very closely at your side of the argument, but in the end, no matter our personal opinions, the law is NOT unconstitutional.

 

Jim Lane

(11,175 posts)
8. Constitutionality is not at issue on this appeal.
Wed Mar 4, 2015, 06:14 PM
Mar 2015

It's just a question of statutory interpretation -- does the law provide subsidies for all income-eligible citizens, or only for those in states that have their own exchanges?

It would be constitutional for Congress to do it either way. SCOTUS has to figure out what Congress meant, when each side can point to language somewhere in this huge bill that supports its interpretation.

 

Jim Lane

(11,175 posts)
10. It turns out I'm not completely right.
Thu Mar 5, 2015, 03:38 PM
Mar 2015

The first question is indeed one of statutory interpretation. If the plaintiffs' interpretation were accepted, however, then the federal government would be treating the states differently, depending on whether they established an exchange. At the oral argument, Kennedy raised the possibility that this would present a constitutional issue.

I haven't read the transcript and I don't know exactly what he was getting at it. The plaintiffs' argument is that Congress wanted to provide a financial incentive to states to set up exchanges. There are other areas where financial benefits are available or not, depending on a state's choice, notably the Medicaid expansion in this very statute (made a state option by the last SCOTUS ruling).

Still, if Kennedy sees a constitutional problem, that could be a deciding factor. One long-established axiom of statutory interpretation is that, if there are two plausible interpretations, and one presents a constitutional problem and one doesn't, courts should prefer the latter. Maybe this is how we'll get Kennedy's vote.

red dog 1

(27,875 posts)
5. Kicked!....Thanks for posting, Purveyor
Wed Mar 4, 2015, 03:48 PM
Mar 2015

What Justice Kennedy said is, indeed, good news, IMO.

However, don't forget, this is the same guy who voted FOR Citizens United.


Then there's this:
"Scalia Insists Congress Would Act If SCOTUS Nixes Obamacare Subsidies"
http://www.democraticunderground.com/10141029133

 

Doctor_J

(36,392 posts)
7. surprise, surprise. scotus not going to turn off the money spigot to the insurance companies
Wed Mar 4, 2015, 05:14 PM
Mar 2015

I'm shocked!!!

To the Gingrich care fan club at du - your pet project is safe.

Latest Discussions»Latest Breaking News»Hospital Stocks Surge Aft...