Healthcare Reform is Upheld: What It Means for Stocks

President Obama’s healthcare reform was upheld today by the Supremes. So what does it mean for investors? The good news is, not too much, at least for now. The Dow instantly fell 100 points, but honestly, that’s just nervous traders who’d get scared of their own shadows.

Bear in mind that since the Senate originally passed the bill on Christmas Eve in 2009, the Dow has gained 2,000 points. Of course, I’m not saying that it caused the rally, but it didn’t prove to kill it either. Also, most of the mandates don’t start until 2014, and there will be a lot of politics between now and then.

The bottom line: Don’t expect to see many companies drop coverage for their employees. Some will certainly rework their plans. The law will impact companies with employee counts near 50 since that’s the line where the $2,000 per employee penalty kicks in. However, very few of those are publicly traded.

Posted by on June 28th, 2012 at 12:20 pm

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