If You Have Stock In Health Insurance Companies
Healthcare interest groups spent tens of millions of dollars cutting deals with the Obama administration and Congress in 2009 and 2010. The Supreme Court may soon leave those deals in tatters—and saddle the healthcare industry with multi-billion dollar losses.
Industry insiders have been following the first two days of the high court’s consideration of the law, but the debate over severability may be the most important yet for the interests of pharmaceutical and healthcare giants.
If the court rules that the individual mandate, which requires every American to purchase health insurance or pay a costly “tax penalty,” is unconstitutional, it can still choose to uphold the remainder of the law.
But that would be an expensive decision for drug companies, according to business intelligence firm Global Data, which estimates that “the pharmaceutical industry … may lose out on $115 billion in additional revenue over the next decade if the law is overturned.”