The U.S. Supreme Court has agreed to hear a lawsuit challenging the legality of subsidies under the Patient Protection and Affordable Care Act in states that did not establish their own insurance exchanges, and the court's decision in the case could negatively affect healthcare providers and insurers, according to a Bloomberg report.
Here are five things to know about the negative effect the Supreme Court's decision to hear the subsidy challenge is already having on the healthcare industry and also how a decision doing away with subsidies in states without their own exchanges could be harmful to the industry.
1. Although the high court has only announced it will hear the case, Franklin, Tenn.-based Community Health Systems has already began to feel the potential negative impact a decision doing away with the subsidies could have. The day after the Supreme Court said it would take up the subsidy challenge, shares of CHS fell 5.5 percent to $47.81, according to Bloomberg.
2. Of all the major for-profit hospital operators, CHS has the most riding on the Supreme Court's decision, with 96 percent of its hospital beds located in states with federally run exchanges.
3. Nashville, Tenn.-based Hospital Corporation of America was also negatively affected by the Supreme Court's decision to hear the case. Shares of HCA fell 4.7 percent to $65.75 the day after the announcement was made, according to Bloomberg.
4. Health insurers were also hit by the Supreme Court's announcement it would hear the subsidy challenge. After the announcement was made, shares of UnitedHealthcare fell by 2.7 percent, and shares of Aetna fell by 2.9 percent.
5. If the Supreme Court decides to take away subsidies in states that did not establish their own insurance exchanges, hospitals in those states will likely begin seeing far less insured patients as many would not be able to afford their premiums without the subsidies.
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