Waiting on the Obamacare ruling in Texas
Height Capital Markets is watching developments closely in the Texas vs. Azar case in which GOP attorneys general are aiming for a preliminary injunction against the Affordable Care Act on the grounds it is unconstititional.
The firm doesn’t expect disruption to the individual insurance market in the short term with appeals either way likely, but does think investor concerns about the future of ACA could impact Centene (NYSE:CNC) and Moline Healthcare (NYSE:MOH) negatively. Hospital operators (HCA, THC, HUM, UHS, SGRY, SSY, SEM, QHC, HLTH, LPNT, CYH) could also see some volatility after the Texas vs. Azar ruling comes down.
Height analyst Andrea Harris on the implications further down the road: “Should Texas v. Azar reach the US Supreme Court and the Court were to strike down the ACA in whole or in part, we believe the current political climate around protecting people with pre-existing conditions would be enough to compel Congress to intervene… In fact, we expect House Democrats will seek to pass legislation in early 2019 to uphold pre-existing condition protections in the event Texas v. Azar is found for the plaintiffs or for DOJ.”
The timing of the judge’s ruling isn’t known for certain, although most analysts expected a post-election determination date.