A Virginia judge has ruled that the Obama health care bill is unconstitutional. It's unconstitutional to force people to buy coverage, which is hurting shares of the insurers like UnitedHealth Group Inc. (NYSE: UNH) and WellPoint, Inc. (NYSE: WLP).
The insurance companies initially spiked on the news, but just as fast as the spike happened, shares are coming back down just as fast. This would mean less business for these insurance companies, so potential profits will be hit.
Congress has exceeded its power said Judge Hudson, the ruling judge in the case. The judge did not rule about the validity of the entire law, just this section of the law.
ADDITIONAL COVERAGE FROM THE AP:
RICHMOND, Va. (AP) -- A federal judge in Virginia has declared the Obama administration's health care reform law unconstitutional.
U.S. District Judge Henry Hudson is the first judge to rule against the law, which has been upheld by two others in Virginia and Michigan.
Virginia Attorney General Ken Cuccinelli filed the lawsuit challenging the law's requirement that citizens buy health insurance or pay a penalty starting in 2014.
He argues the federal government doesn't have the constitutional authority to impose the requirement.
Other lawsuits are pending, including one filed by 20 states in a Florida court. Virginia is not part of that lawsuit.
The U.S. Justice Department and opponents of the health care law agree that the U.S. Supreme Court will have the final word.
