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Health Care Hiccup

6/22/2015
By Charles Payne, CEO & Principal Analyst

There’s a pending Supreme Court decision on Obamacare which could send Washington and even the stock market into a tailspin. It certainly has the political world upside down. There are so many ironies to note, but none more interesting than the fact Obamacare was doomed to failure. In some ways, a legal rebuke towards part of the law might be right nudge to get it repealed or replaced the right way.  However, there are no plans!                            

The White House says there’s no Plan B.

The GOP is cobbling together something akin to the very subsidies that could be ruled against.

Here are the numbers from U.S. Department of Health and Human Services (HHS):

  • 34 states are part of the federal marketplace
  • 10.2 million Americans signed up for Obamacare
  • 6.4 million Receive subsides
  • $272 month is average subsidy

The big problem is even with subsides, the scheme is too expensive for dissuading millions from ever signing on and for those that have enrolled, they’re curtailing medical treatments, in part, due to expensive deductibles.  Next year, when all the gimmicks have run their course, premiums are set to make dramatic increases across the nation.

King v. Burwell is going to make history. It will signal how far government can go to make up the rules as they go along, selling a massive project through bait and switch practices (while you won’t lose your doctor, no one was told about massive subsides). The highest court in the land is willing to look away because it rules on what the sale pitch should have been.

However, the irony is that now that the plan is in place and 34 states are involved, but taking the wheels off while it’s still moving would be the mother of all train wrecks. Moreover, the Congressional Budget Office (CBO) has scored repeal; $137 billion would impact on the economy over a period of years.

This will be the biggest news of the week/year/decade. I’m not sure how to predict the market’s reaction.

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Charles Payne
Wall Street Strategies


 

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