Bloomberg News

Health Stocks Lower as Supreme Court Upholds Industry Overhaul

June 28, 2012

Health Stocks Lower as Supreme Court Upholds Industry Overhaul

Medical professionals outside the Supreme Court. Photographer: Brendan Smialowski/AFP/Getty Images

U.S. health-care stocks remained lower after the Supreme Court upheld President Barack Obama’s overhaul of the industry.

The Standard & Poor’s 500 Health Care Index dropped 0.4 percent at 10:10 a.m. in New York as Cigna Corp. and Pfizer Inc. paced declines.

Trading in Community Health Systems Inc., Tenet Healthcare Corp., WellPoint Inc. and HCA Holdings Inc. was paused by circuit breakers meant to limit market volatility.

The health-care index had rallied 8 percent this year through yesterday, outpacing the 5.9 percent gain in the overall benchmark gauge of U.S. equities. The index includes 52 drugmakers, health insurers and other companies related to the industry. Its largest stocks are Johnson & Johnson, Pfizer Inc. and Merck & Co., which collectively make up almost a third of the index, according to data compiled by Bloomberg.

President Barack Obama’s plan was meant to extend coverage to at least 30 million uninsured Americans in the biggest overhaul of the nation’s health-care system since Medicare and Medicaid were enacted in 1965.

To contact the editor responsible for this story: Michael P. Regan at mregan12@bloomberg.net


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