Investing.com – Health care stocks were lower in midday trading after a judge in Texas ruled late Friday that the Affordable Care Act is unconstitutional.
The S&P 500 Health Care index fell about 1%.
The decision late on Friday argued that the health care law can’t stand on its own since Congress repealed the individual mandate last year, which imposed a tax penalty on those who were not insured.
The lawsuit is expected to be appealed and possibly and heard by the Supreme Court, but does not go into immediate effect. If upheld, it would mean fewer customers for insurance companies and fewer insured patients for hospitals.
Centene (NYSE:CNC) fell 6%, Universal Health Services (NYSE:UHS) dipped 1.4% and Cigna (NYSE:CI) lost 1.5%.
Anthem (NYSE:ANTM) declined 2%, while WellCare Health Plans (NYSE:WCG) inched down 0.9%. UnitedHealth Group (NYSE:UNH) slipped 1.2%.