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Ruling against subsidies could hit hospital stocks harder than earnings
Modern Healthcare

Hospitals and investors are banking on the Supreme Court or the states to save premium subsidies that have made health insurance affordable for 6.4 million people in 34 states. But the stocks of publicly traded hospital companies could take a big hit if that doesn’t happen.

Hospital executives are nervously anticipating the high court’s imminent ruling in King v. Burwell, which could invalidate premium tax credits in up to 37 states using the federal exchange. Their preparations have varied widely, with some saying their strategy is watchful waiting. The American Hospital Association has hired consultants Manatt Health Solutions to work with state hospital associations to develop contingency plans.

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