If you want to know how slim chance this bill has of making it to the President’s desk, look no further than the markets yesterday.
No matter what YOU thought of Obamacare, Wall Street liked it. The passage of the Affordable Care Act in 2011 ushered in a remarkable period of growth for health stocks - over the past five years, they’ve outperformed the S&P 500 by close to 30%! (Amazing how requiring all Americans to purchase coverage can drive up profits…)
So you would think we’d see a drop in the health sector yesterday on fears that profits will reduce when the mandate to buy insurance is repealed…but nothing happened.
The markets stayed virtually flat. Why? Because the market thinks the Republican bill has no shot getting through the Senate.
Expect a far more concerned response from Wall Street If President Trump can prove them wrong and find a way to get this passed!
Let’s Get Practical.
There’s a good chance this iteration of the health bill will never make it through Congress. If it does, it probably will look different than it does today.
Some folks are getting very excited about the repeal of the mandate to buy insurance; others are concerned about increases in their or their parent's healthcare costs. Folks are wondering how it may affect their taxes this year. For better or worse, let me encourage you to take a deep breath - I doubt we’ll see any actual changes to healthcare this year.
A good rule of thumb in planning is always to prepare for a worst-case scenario, and then you can feel confident you’re ready for whatever the outcome will be.
Call me a cynic, but I never assume my life will get better based on any Congressional action. Instead, let’s make sure our plans can handle whatever Washington throws our way.