The King vs. Burwell decision determined the fate of Obamacare and had a significant impact on the market. If Burwell won, millions of Americans would lose their health insurance coverage without healthcare subsidies. However, the overall impacts of a Burwell win are thought to be minor since the administration probably would find a legal workaround to maintain the funding.
The S&P calculated that about $21 billion in tax credits could be lost each year with a ruling in favor of Burwell. On the other hand, losing some customers dependent on tax credits may benefit insurance companies since those insured under the ACA are lowering insurance company’s profit margins. In addition, investors forecast that health care stocks would not plummet without the health care subsidies. In contrast, a ruling in favor of King to keep Obamacare’s structure and subsidies is forecasted to be very beneficial to hospitals, health care providers and health care stocks.
Written by Alison Killian
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Alison Killian is a recent graduate of Grove City College who majored in Business Management and minored in Biology Studies. She is a contributor to Medical Groups and passionate about all facets of healthcare. She plans on continuing work in the healthcare field especially in management. She is very interested in healthcare innovation and finding ways to improve the current system. She hopes to go back to school in a few years to earn a degree in medicine.