In what’s sure to be one of the most played out news stories over the next couple of weeks, the healthcare bill finally got passed by the House of Representatives (219 – 212 vote).
To be honest, I had no idea (nor did I care) what the bill was all about; however, now that it just needs the President’s signature, I thought I’d get to know a little more about this bill.
The bill at hand is slated to “revolutionize” the U.S healthcare system by providing coverage to the 32 million uninsured Americans, putting a stop to the denying of coverage to the sick by insurances, and expand Medicaid.
Along with a companion bill, which is sure to include a bunch of loopholes, the healthcare bill is estimated to cost $940 billion over 10 years. The money is expected to come from cuts to certain parts of Medicaid and taxing the rich people of this country (those that make greater than $250,000/year).
Read a summary of the Senate Healthcare Bill.
What impact does the healthcare bill have on the stock market?
[smartads]
Regardless of how great of a bill people think this will or will not be, the immediate impact will most likely be a nice little sell-off, which should coincide with the much needed correction being called for by many traders.
Opposers debate the source of all this money. How can we demand so much during a time of economic recovery? As traders play games, this is sure to be the overtone for the next couple of market days, at the very least.
This bill does bring about change, and, with change in any policy, it takes time. Besides the ‘immediate improvements’ as listed in the bill summary above, don’t expect other major changes to come for the next couple of years.
Look for pops in insurers and drug companies, but don’t expect a prolonged rally in the sector because of this bill.
What do you think of the healthcare bill? What stocks/sectors will it help? Do you even care?