Obamacare's Insurance Rule Is Upheld by Supreme Court
Published:
Thursday, 28 Jun 2012 | 10:34 AM ET
Text Size 
By: CNBC.com with AP and Reuters
The Supreme Court, in a landmark ruling Thursday, upheld President Obama's health care overhaul, including the controversial requirement that all Americans have health insurance.
 |
Getty Images
Pro-life
activists, led by Rev. Pat Mahoney (2nd L) of Christian Defense
Coalition, pray in front of the U.S. Supreme Court in Washington, DC.
|
The
court on Thursday handed Obama a campaign-season victory in rejecting
arguments that Congress went too far in requiring most Americans to have
health insurance or pay a penalty.
Chief
Justice John Roberts announced the court's judgment that allows the law
to go forward with its aim of covering more than 30 million uninsured
Americans.
The
court, however, found problems with the law's expansion of Medicaid, but
even there said the expansion could proceed as long as the federal
government does not threaten to withhold states' entire Medicaid
allotment if they don't take part in the law's extension.
The
court's four liberal justices, Stephen Breyer, Ruth Bader Ginsburg,
Elena Kagan and Sonia Sotomayor, joined Roberts in the outcome. Justices
Samuel Alito, Anthony Kennedy, Antonin Scalia and Clarence Thomas
dissented.
Stocks of hospital companies moved sharply higher on the decision, including HCA Holdings [HCA
28.00
1.39
(+5.22%)
] and Community Health Systems [CYH
27.205
1.715
(+6.73%)
].
1.39
(+5.22%)
] and Community Health Systems [CYH
27.205
1.715
(+6.73%)
].
Stocks
of drug companies and medical device makers are slightly lower for the
day as analysts sort through the Supreme Court's ruling. Stocks of the
biggest insurance companies are also lower.
 |
Bill O'Leary | The Washington Post | Getty Images
Chief Justice John Roberts
|
"This
gives us clarity, which is what markets needed," said Todd
Schoenberger, Managing Principal At The Blackbay Group In New York.
"This resolved the uncertainty about healthcare."
"However,"
he added, "with that said, there seems to be some confusion on the
ruling. I'm getting word that the mandate is looking like a tax, and if
that is the case, that could hurt the economy and that won't help at
all. Who knows how this impacts the election?"
The markets overall were sharply lower, amid skepticism that European leaders would be able to form a solution to tackle the ongoing debt crisis.
The
ruling on Obama's sweeping federal health care law will shape the
contours of the presidential campaign through the summer and fall. Both
Obama and Republican rival Mitt Romney are primed to use the outcome for political gain.
Before the decision, Obama has expressed confidence the court will uphold his signature legislative initiative.
Obama
recently avoided mentioning the impending court ruling directly, but he
has vigorously defended the health-care overhaul as critical to the
public's health and well-being in campaign events this week.
"I think it was the right thing to do. I know it was the right thing to do," he told supporters in Boston.
Romney,
who as Massachusetts governor signed a health care law on which the
Obama's federal law was modeled, has focused more than usual on the
Supreme Court ruling this week.
Polling
suggests that most Americans oppose the law, but an overwhelming
majority want Congress and the president to find a new remedy if it's
struck down. Romney so far has spent little time crafting a
comprehensive plan to replace the overhaul.
And
the Obama campaign already has seized on Romney's opposition to the
most popular provisions in the law. For example, Romney would not
prevent health-care companies from denying coverage to new customers
with medical conditions. Nor would he force them to cover young adults
on their parents' plans through age 26.
Still, both sides will use it to raise money and motivate supporters.
And
outside groups are ready to unleash a flood of advertisements following
the ruling, including a 16-state, $7 million ad buy from the
conservative political action group Americans for Prosperity.
>>>With a big assist from Chief Justice John Roberts, President Bush's carefully handpicked guy, Obama care survives. Roberts called it a tax thing that Congress can do. No matter what would have happened we would have seen protests and angry reaction. Now it gets to be from the right. So let the games begin. Great opportunity now for those on the right to express dissent and maintain dignity. Let's see how that goes.
No comments:
Post a Comment