Health insurers are mostly trading lower following the historic ruling by the Supreme Court holding up most of the Affordable Care Act this morning — their costs are expected to rise in part because they will be forced to offer affordable coverage to people with preexisting conditions, and they will have to deal with the complications and competition of offering coverage through state-based insurance exchanges.
HMOs that make much of their money from Medicaid are on the upswing, however, as Medicaid rolls are expected to grow significantly.
The ruling upheld the Medicaid expansion, but said that Congress can’t take away states’ existing benefits if they fail to comply with the new regulations.
“Nothing in our opinion precludes Congress from offering funds under the ACA to expand the availability of health care, and requiring that states accepting such funds comply with the conditions on their use. What Congress is not free to do is to penalize States that choose not to participate in that new program by taking away their existing Medicaid funding.”
Molina Healthcare (MOH) jumped 7.7%, Centene (CNC) rose 6.8% and WellCare Health (WCG) rose 8.6%.
No comments:
Post a Comment