NEW YORK (TheStreet) -- Shares of Community Health Systems (CYH) were gaining 9.9% to $60.74 on heavy trading volume after the Supreme Court ruled the federal government can continue issuing subsidies to Americans through the Affordable Care Act, also known as Obamacare.
In a 6-3 decision the Supreme Court ruled that the U.S. government can provide subsidies to Americans living in states that did not set up their own health insurance exchanges through the ACA. "Congress passed the Affordable Care Act to improve health insurance markets, not to destroy them," Chief Justice Roberts wrote for the court.
About 6.5 million American could have lost their credits for healthcare if the Supreme Court ruled against the ACA, according to the Wall Street Journal.
Hospital stocks such as Community Health Systems jumped following the ruling as the ACA helps patients pay for their care.
About 4.1 million shares of Community Health Systems were traded by 10:59 a.m. Thursday, above the company's average trading volume of about 1 million shares a day.