After Credit Card Law, It’s The New Healthcare Bill; What’s Next?

House of Representatives finally passed the health care bill (219/212 votes) and I am sure this news will occupy most pages of our newspapers for next few days.

Honestly, I didn’t have much idea about the bill nor did I bother to think about it until this morning. It, however, needed president’s signature. Hence, I thought it’s something I should know about. At least the particulars of the bill.

According to Medicaid, this bill will revolutionize health care system in US as it promises to cover the uninsured population of the country, majority of them denied to be covered by insurance companies due to their health problems and diseases. And the number of such uninsured people extends up to 32 million.

It sound great until you read a companion bill that includes dozens of loopholes. I didn’t really feel the urge to read it. The cost to execute this bill for next ten years is estimated to be $940 billion. As expected, this money will be extracted by taxing rich people and cutting a part of insurance provider’s margin. So, ultimately, it’s the same insurance company that denied coverage few years ago, which will cover you now, though in a roundabout way.

So, how is it supposed to impact the movement of stock market?

Irrespective of how people welcome the bill, the immediate effect will be seen in the market today. And it’s very likely that people might involve in a bit of selling, which will bring about a much need fall, or correction, as traders might term it later today.

Critics have already started opposing the bill saying the funds can be utilized to boost other sectors, an immediate need of the hour. In such weak economic conditions, they see this as a completely unethical step. Hence, the market, at least for a couple of days, will see its bit of correction.

Do you think it will affect other sectors? Do you think it will give a boost to the economy? Do you even care? I don’t.