Analyst Note| Julie Utterback, CFA |
With Justice Ruth Bader Ginsburg's death Sept. 18, another layer of complexity has been added to this election year for the healthcare industry. The Supreme Court is scheduled to hear oral arguments on the Affordable Care Act on Nov. 10, a week after the U.S. election. Prior to Ginsburg's death, the court looked likely to uphold the ACA at least along the previous voting lines (5-4), but without her vote, the path to upholding the law just got more complicated, creating the potential for the millions of Americans who gained access to insurance through the ACA to lose that coverage. For now, we are not changing our views on any moats or valuations in the industry, but investors should be aware of the various scenarios that could influence the U.S. healthcare system over the next several weeks.