Odds Now 3 to 1 for Ruling Against Individual Mandate

June 26, 2012 1:38 PM EDT
Recent data out of political odds-maker, Intrade, suggests that the Supreme Court will rule the individual mandate unconstitutional. The odds are now 3 to 1 for a ruling against the mandate, or 74.4 percent.

Investors are likely pricing stocks in the health sector to reflect these expectations, although many traders are sitting on the sidelined prior to the ruling, which is expected to be announced this Thursday. Traders are bracing for a volatile reaction immediately following the Supreme Court's decision.

The court will also determine if the conditions placed upon the states in order to receive funding under the Medicaid program are unconstitutionally coercive.

The following is a list of stocks which could be affected: Aetna Inc. (NYSE: AET) AMERIGROUP Corporation (NYSE: AGP) Cigna Corp. (NYSE: CI) Centene Corp. (NYSE: CNC) Coventry Health Care Inc. (NYSE: CVH) Health Net, Inc. (NYSE: HNT) Humana Inc. (NYSE: HUM) Molina Healthcare Inc. (NYSE: MOH) Unitedhealth Group, Inc. (NYSE: UNH) WellPoint Inc. (NYSE: WLP).

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