Photo: The White House on flickr
A judge has ruled that a key part of Obamacare to be unconstitutional…Specifically, a conservative low-level judge in Virginia ruled that the individual mandate is unconstitutional.
Healthcare stocks like United Healthcare and Aetna are jumping on the news. (Update: But they shouldn’t be, because they still have to accept all comers without the benefit of a diversified risk pool. See here for more.)
While the individual mandate to buy insurance is just one slice of Obamacare, it is definitely a crucial aspect to it, since the requirement that everyone be part of it is what ensures a sufficiently diversified risk pool.
The suit was brought by Attorney General Ken Cuccinelli, who just tweeted “HC Ruling is in. Va won this round.”
NOW WATCH: Briefing videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.