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Ezrati’s Economic Outlook: Supremes Will Clarify Little

The high court's decision on healthcare reform is bound to leave uncertainty.

By Milton Ezrati | Updated on June 12, 2012

As of this writing, the Supreme Court has yet to announce its decision on Obamacare. It has not even announced when it will reveal its decision. Still, if much about the court’s conclusion remains a mystery, two things are pretty clear: 1) the court will almost surely hand down something complex, and 2) whatever it decides, uncertainty will continue to plague business and investment decision making.

Apart from the court’s decision about whether it can decide anything until the law goes into effect, it is focusing on two matters. The big issue is the individual mandate and whether it violates the constitution to demand, as Obamacare does, that individuals purchase healthcare insurance. The second issue is Medicaid expansion and whether it exceeds the limits of federal authority to demand, as Obamacare does, that states provide a certain level of healthcare insurance coverage for all those with incomes up to 133% of the federal poverty line.

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