Supreme Court Health Care Reform: Businesses Actually Worse Off If Supremes Repeal Law

Amy Brighton of Medina, Ohio, left, protest against health care reform with other members of the Tea Party Patriots, outside of the Supreme Court after the first day of arguments on President Barack Obama's health care law

Health care companies emptied their war chests in their bid to block health care reform in Congress.

Now, it looks like a repeal of the controversial law would be bad for business for many of these companies.

Since President Barack Obama signed health care reform into law in March 2010, profits and share prices shot up at large health insurance companies like UnitedHealth Group and WellPoint. The Supreme Court began hearing arguments Monday in a case challenging the constitutionality of the health care reform law. The Court also will convene Tuesday and Wednesday and is expected to issue a ruling before the end of June. Health care reform could be repealed in whole or in part. Either outcome would upend preparations for an expansion of health insurance coverage to more than 30 million people.

Though the industry still opposes some new regulations from the law, companies are looking to health care reform as a healthy source of new business. The law is supposed to create a new marketplace for insurance where Americans have to buy what insurance companies sell and millions will receive subsidies to help pay for it.

Firms that perform diagnostic tests already have benefited from provisions that require insurance companies to cover preventive medicine and screenings without charging a co-payment, the Journal says. Companies like this, which include Quest Diagnostics and LabCorp of America, would see even more volume if the law's coverage expansions are allowed to take effect.

These companies stand to rake in cash if the Supreme Court upholds the so-called mandate, which would require that all Americans have health insurance.

The danger for insurers now is that the court upholds the law but strikes down the individual mandate. The fear is that the court knocks out the mandate but leaves in place requirements that insurance companies cover anyone willing to pay -- and limits their ability to charge higher rates to older and sicker people.

Likewise, the hospital industry, which endorsed health care reform, is nervously eyeing the Court this week. Lobbying groups for hospitals agreed to a $155 billion, 10-year cut in their Medicare payments under the law because fewer uninsured people means fewer unpaid medical bills. Drug companies struck a similar deal and backed the health care reform law.

Comments

[Pediego]

05:50 PM on 03/28/2012

The solution in civilized human societies is Universal healthcare. Healthcare for all provided by their government, government by the people for the people " ONE FOR ALL and ALL FOR ONE"

[slickbottom]

03:43 PM on 03/27/2012

Universal health care for all Progressives and fast food, cigarettes and bibles for all Regressives.

[kaja gam]

08:12 AM on 03/27/2012

Medical Insurance is more than doctor's visits and prescriptions. It is the basis for every other achievement in life - lack of it could be the difference between personal succes in life or becoming a burden to society. Medicaid saved my daughter's future. Struck with a deep psycosis right before entering college, and hospitalized for over three months, we were faced with medical bills that would have left us penniless and with no opprtunity for my daughter to get and education. Because Medicaid covered her and made it possible for her to get health insurance, we could help her pursue a college education. What is the cost to society of a year's support compared to a lifelong disability? The math is clear to me: By graduating from college and being able to enter the work force, my daughter will support society where she otherwise could be a lifelong burden to it. So Obamacare - I say this with pride - is an investment in our future that reaches far beoynd a paid visit to the doctor.

Freedom of choice is exactly at stake in this supreme court battle. The even playing field is not, unfortunately. Those 26 states will pay the price for their own ignorance - once again.

[halconnoche]

06:02 PM on 03/27/2012

Obamacare and Medicaid are two different issues. If your daughter was on Medicaid then she did not have her own health insurance and her income level was below the poverty level. She did not pay premiums for Medicaid. The cost of her treatment was paid for by taxpayers through the Medicaid program. Your argument that you would have been left broke is not true if you qualified for Medicaid. That program is in place to help provide healthcare for those in poverty. If she was smart enough to get into college but your family income is below the poverty level, then she would have qualified for federal assistance to go to college as well.

[kaja gam]

06:26 PM on 03/27/2012

You are of course right about the distinction between Medicaid and the law being discussed now. However, you missed my point and that is still the same: UNLESS we can support our nations health - that is further a population made up of 'poor' middle income or well to do people alike, - we cannot maintain a high level of well educated people and this has an effect on the economy overall and our competitiveness in the global market place. This is NOT about a handout well received but empowerment to succeed.

[Pediego]

05:45 PM on 03/28/2012

They are different but their objects are the same and address the same issues. They are the same in more civilized countries.

[fields4ever]

07:15 PM on 03/27/2012

Medicaid paid for life saving cancer surgery for me in 1980, when I was a 26 year old graduate student without insurance due to a pre-existing condition, and no longer covered by my parents policy which stopped when I was 21. But the Reagan administration soon decided that students no longer should qualify for Medicaid; I guess I was 'lucky' my cancer showed up in 1980 and not a few years later. I would have been at County hospital instead of UCLA.

[kaja gam]

07:29 PM on 03/27/2012

Thanks my point exactly! and thanks for sharing :)

[Stilley Periodical]

08:05 AM on 03/27/2012

Duh, this legislation was written by the health insurers and bigpharma. All the hate on Obamacare is election year hysteria and republicans will be paid to forget their outrage in 2013. It's still a needed bill for many Americans, but it also only feeds the beast more money, making real health reform even more difficult for the future.

[Pippen]

01:34 PM on 03/27/2012

Agreed. Keep shouting it, they will eventually get it.

[rotorhead1871]

10:39 PM on 03/26/2012

they wont kill it, they will maybe make some rulings on certain parts..but overall it will stand.

[dragonladywaltham]

09:36 PM on 03/26/2012

Sounds like they are employing the WRONG party. LOL

[edward60]

09:27 PM on 03/26/2012

Some investors my think that now, Insurance companies margins will shrink because they will be a lot more accountable.

[dragonladywaltham]

09:37 PM on 03/26/2012

Isn't that the POINT?

[luvsox]

09:10 PM on 03/26/2012

Why is it we never hear anything about Canadian health care reform?