Experts: Obamacare Ruling Doesn’t End Business Uncertainty

Thursday, 28 Jun 2012 06:09 PM

By Dan Weil

A    A   |
   Email Us   |
   Print   |
   Forward Article  |
  Copy Shortlink
The Supreme Court’s decision to uphold the healthcare reform law Thursday doesn’t eliminate uncertainty for American companies, experts say.

Indeed, it could increase that uncertainty. Businesses will remain reluctant to spend their $1.2 trillion in cash on employment and expansion, Greg Valliere, chief political strategist at Potomac Research Group, tells CNBC.

Some of the uncertainty stems from the fact that Republican presidential candidate Mitt Romney promised to repeal Obamacare quickly if he’s elected.

Editor's Note: How You Lost $85,000 During the Last Decade. See the Numbers.

“Therefore, the reluctance of businesses to spend and hire will persist at least through the election," Valliere says.

Apart from the question of Obamacare’s future, there’s the issue of how its provisions will be implemented.

"The level of uncertainty about the outlook and ultimate cost to business of the healthcare reform bill remains somewhat," David Resler, chief economist at Nomura Securities, tells CNBC.

For example the Supreme Court upheld the individual mandate to buy insurance on the basis that it’s a tax. So how will the government collect the tax and how it will be reported? Resler asks.

"Most of the scheduled implementation for that has not been met, and it's not clear that the provisions under the health care law will be met as originally envisioned in the law," he says.

To be sure, hospital stocks rose after the ruling.

“For the hospitals, it means that they get payment and they get more potential customers," J.J. Kinahan, chief derivatives strategist for TD Ameritrade, tells The Associated Press.

Editor's Note: How You Lost $85,000 During the Last Decade. See the Numbers.

© 2014 Moneynews. All rights reserved.

   Email Us   |
   Print   |
   Forward Article  |
  Copy Shortlink
Around the Web
Join the Newsmax Community
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Retype Email:
Zip Code:
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Peter Orszag: Burwell's Big Chance to Control Healthcare Costs

Thursday, 17 Apr 2014 12:24 PM

In the past several months, healthcare costs outside Medicare may have accelerated, even as Medicare spending growth rem . . .

Morici: White House Strategy: Fabricating Fear and Injustice

Thursday, 17 Apr 2014 12:06 PM

Facing mid-term elections and burdened with persistently high unemployment, President Obama is playing the race, gender  . . .

Obama Budget Plan Would Boost Tax Revenues

Thursday, 17 Apr 2014 11:11 AM

President Barack Obama's fiscal 2015 budget request would boost U.S. tax revenues by nearly $1.4 trillion over 10 years  . . .

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved