Health Insurers, Hospitals And Health Care Companies Tumble On Stock Market After Judge’s Health Law Ruling
The industry was left reeling despite the fact that many legal experts expect the decision to be overturned. Meanwhile, insurers hastened to try to reassure their customers that nothing is changing immediately.
Reuters:
U.S. Healthcare Stocks Drop After Judge Rules Obamacare Unconstitutional
Shares of U.S. health insurers, hospitals and healthcare companies fell on Monday in the aftermath of a ruling by a federal judge in Texas that the Affordable Care Act (ACA), commonly called Obamacare, was unconstitutional. Many legal experts predicted U.S. District Judge Reed O'Connor's decision on Friday eventually will be reversed on appeal considering that the law has been upheld by the Supreme Court, but the uncertainty created by the ruling drove down healthcare stocks on Monday. (12/17)
The Associated Press:
Health Care Sector Roils After ACA Court Ruling
Hospital chains HCA Inc. and Tenet Healthcare Corp. dropped 7 percent and 4 percent respectively when markets opened Monday. Centene Corp., a health insurer focused heavily on the government-funded Medicaid program and the ACA’s individual insurance exchanges, fell 8 percent. Other insurers that slipped included Molina Healthcare Inc. and Anthem Inc., companies that have benefited from either the insurance exchanges or the law’s Medicaid expansion.(12/17)
Bloomberg:
Health Stocks CYH, THC, HCA Fall After Obamacare Ruling
Debt investors were also weary of the political uncertainty that was created after the judge’s decision. Tenet and Community Health’s bonds were among the top decliners in the high-yield market on Monday, according to Trace bond trading data. Tenet’s 6.75 percent and 7 percent senior unsecured notes due 2025 and 2022 slipped 2 cents on the dollar to 94.75 and 94.25 respectively, according to Trace. (Darie, 12/17)
Bloomberg:
States' Credit Quality Threatened By Obamacare Ruling, S&P Says
A federal judge’s ruling Friday that Obamacare is unconstitutional poses a threat to the credit quality of some U.S. states, as well as to hospitals and insurance companies, S&P Global Ratings warned. States that expanded Medicaid under the Affordable Care Act -- the signature health-care overhaul under President Barack Obama -- could lose billions of dollars in federal money and could face significant costs if they try to keep coverage for people newly-covered by the program, S&P said in a release Monday. Certain providers of substance abuse treatment, emergency services and mental health services could also be negatively impacted. (Albright, 12/17)
Modern Healthcare:
Obamacare Ruling Has Health Insurers Reassuring Customers
Health insurers and the lobbying groups that represent them blasted a Texas federal judge's decision to strike down the Affordable Care Act as unconstitutional on Friday. They moved quickly to ensure plan members that their insurance coverage and any federal financial help they receive will stay unchanged during the long legal fight sure to ensue. "While we remain extremely disappointed in this decision, this is going to be a lengthy legal process and while it continues, we are assuring Blue Cross and Blue Shield members that their health coverage and the financial assistance they may be receiving to help them afford it remains in place," said Justine Handelman, senior vice president in the office of policy and representation at the Blue Cross and Blue Shield Association. (Livingston, 12/17)
