On Thursday morning, stock prices of hospitals and five of the biggest health insurers climbed after the Supreme Court handed a victory to Obamacare.
The 6-3 decision in King v. Burwell upheld a key part of the 2010 Affordable Care Act, which offered tax subsidies to states to establish their own health care exchanges.
Major hospitals led the surge. Dallas-based health service provider Tenet Healthcare soared nearly 12 percent after the ruling. Community Health Services, the biggest non-rural hospital chain, climbed nearly 10 percent. HCA Holdings, the parent company of Hospital Corporation of America, rose close to 9 percent. LifePoint Hospitals, which provides health services in rural areas, swelled about 7 percent.
Stock prices increased more modestly for health insurers. UnitedHealth and Humana surged the highest, climbing nearly 3 percent following the decision. Shares in Anthem Blue Cross, Aetna and Cigna rose, too.
“Congress passed the Affordable Care Act to improve health insurance markets, not destroy them,” Chief Justice John Roberts wrote in the landmark ruling. “If at all possible, we must interpret the Act in a way that is consistent with the former, and avoids the latter.”
This post has been updated with new information throughout.
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