Get In Healthcare Now
Were waiting with baited breath to hear the outcome this Thursday from the Supreme Court on Obamas Healthcare Affordable Care Act. Will they overturn the single mandate? Will all or part of the bill be deemed unconstitutional?
The way I see it, the bill has no chance to survive unchanged
The decision is going to come down to commerce or taxes. And after I explain why, youre going to want to be invested in healthcare stocks to reap the benefits of the upcoming ruling.
The arguments for repealing the Obamacare bill are clearly laid out. They challenge the constitutionality of the healthcare law, stating the US government has no authority to require individuals to purchase health insurance.
And I couldnt agree more.
Think of it this way when you register your car in most states, they require you to provide proof of insurance. The state is the governing body that created the laws requiring you to meet this requirement, not the federal government.
In addition, the ability to drive a car on a given states roads is a privilege, not a right. And having insurance to protect both yourself and other drivers is the reasoning behind the mandate, and something agreed to by the citizens of that particular state.
It seems over-reaching for the US government to demand you carry some level of health insurance. Its both unprecedented and a clear violation of our constitutional rights.
Now the Obama administration is hanging its hopes on some complex legal interpretations of the Constitution to keep their healthcare law alive. Theyre looking to both the Commerce Clause and Taxing and Spending Clause of the Constitution.
The Commerce Clause is where the Obama administration will likely rest their hopes for a victory.
Theyre arguing that the individual mandate should be upheld under the Commerce Clause because “the minimum coverage provision … regulates economic conduct with a substantial effect on interstate commerce.”
The other hope for the bill to survive would come if the Supreme Court ruled the penalty for not complying with the law is a “tax”. This outcome would support the argument for constitutionality under the Taxing and Spending Clause.
Given the challenges facing the Obama administration, I simply cant see how this law will survive in its current form. And if the Supreme Court gives their decision and determines the individual mandate is unconstitutional healthcare stocks are going to rally.
In advance of the decision, Id recommend you pick up some healthcare penny stocks for your portfolio. Many times, penny stocks lead a rally higher especially when the rally is happening for fundamental reasons.
And in this case, a ruling overturning Obamacare is about as fundamental a catalyst youll ever find to move healthcare stocks higher.
Editors Note: If youre not sure where to find great healthcare penny stock companies, let our penny stock pro, Gordon Lewis, show you his secret to picking winning penny stocks
Until next time,
Brian Walker
Category: Healthcare Stocks
