By David StermanNEW YORK ( StreetAuthority) -- Cooler heads have prevailed. A showdown between the executive branch of government and the judicial branch of government looked to usher in a new era of intra-governmental rancor that our Founding Fathers sought to avoid. But the U.S. Supreme Court's decision to let much of the Obama Administration's health care law stay intact is a victory for anyone who wants to see policy makers in Washington move forward -- not backward -- in addressing many of our nation's major's fiscal challenges.
Stocks that could possibly benefit include: Community Health Systems ( CYH), Tenet Healthcare ( THC), Universal Health Services ( UHS) and HCA ( HCA).
Health insurers that will gain access to millions more new patients. As I said in a previous article, "Insurers hate the idea of being forced to extend insurance to high-risk patients. Yet, they agreed to take on these patients as long as all patients -- high-risk and low-risk -- were enrolled. Insurers realized that if they had to cover any patients seeking coverage, without all being required to participate, then people would simply wait until they got sick to apply for insurance. " Stocks that could benefit from this ruling include Coventry Health ( CVH), United Health ( UNH), Humana ( HUM) and Aetna ( AET), although I would caution against buying these stocks strictly because of this news, as some experts feel differently about whether these stocks would benefit, and it will likely take a while for this to play out before we really know for sure.
Action to Take: The Supreme Court's ruling doesn't mark the beginning or end of our nation's ongoing health-care crisis, but is simply another mile marker along the way. In the next five or 10 years, look for further discussions about how to improve or alter the delivery of health care as it becomes increasingly apparent that cost pressures have not fully gone away. But with these challenges come opportunities to profit. Whether it's a biotech company developing the next life-saving cancer treatment, or a software company that will help hospitals and doctors' offices transition to electronic medical records, the health-care sector is one well worth watching -- and one that can be very lucrative for smart investors who make the right moves.