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 Obamacares 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 administrations 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 laws initial implementation. Since the laws 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
still_one
(92,454 posts)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)will only get worse if they overturn this idea.
still_one
(92,454 posts)lark
(23,168 posts)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)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)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.
Elmer S. E. Dump
(5,751 posts)Jim Lane
(11,175 posts)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)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)I'm shocked!!!
To the Gingrich care fan club at du - your pet project is safe.