(315) 624-7300 / Email Us
Ascent Wealth Partners
  • Home
  • Investing
  • Planning
  • 401(k)
  • Knowledge
  • Team
    • Brad Kowalczyk
    • Mark Moshier
    • Scott McCartney
    • Doug Bissonette
    • Neil Edmonds
    • Joe Summa
    • Nancy Kowalczyk
    • Chris Lai
    • Tim Welchons
    • Steve Basile
    • Connie Benson
  • My Account
    • Fidelity Login
  • Contact Us
  • Form-CRS
Ascent Wealth Partners
  • Home
  • Investing
  • Planning
  • 401(k)
  • Knowledge
  • Team
    • Brad Kowalczyk
    • Mark Moshier
    • Scott McCartney
    • Doug Bissonette
    • Neil Edmonds
    • Joe Summa
    • Nancy Kowalczyk
    • Chris Lai
    • Tim Welchons
    • Steve Basile
    • Connie Benson
  • My Account
    • Fidelity Login
  • Contact Us
  • Form-CRS
Home Chris Lai Bigly Healthcare Fail
Back Home

Bigly Healthcare Fail

byAscentadmin inChris Lai, Scott McCartney posted onMarch 28, 2017
0
0
Bigly Healthcare Fail

In the seven years of the Affordable Care Act (ACA, or “Obamacare”), House Republicans voted in excess of seventy times to tweak, amend, or outright repeal President Obama’s signature legislation. However, in their first opportunity to craft legislation that could pass both chambers of Congress and be signed by a Republican president, they whiffed.

Last Friday marks the end, for now, of the Republicans’ legislative effort to dismember the ACA, and otherwise reform the nation’s health care system. Amid infighting among House Republican factions, support for the American Health Care Act (AHCA) bill collapsed, and Speaker Ryan withdrew it prior to a vote and certain loss. For the foreseeable future, the ACA will remain the law of the land. And we apologize for the nearly-identical acronyms.

Politically, the President took a stinging loss on his first high-profile legislative initiative. Speaker Ryan is politically damaged, as well. More substantively, the AHCA bill was projected to save money from the federal government’s budgetary baseline, mostly as a function of spending reductions to Medicaid. These forecasted ten-year savings of over $300 billion were desired as spending offsets to the personal and corporate tax cuts intended as the next phase of the White House’s change efforts. The Republican’s ability to maneuver on tax reform while keeping deficits in check is now reduced, although not eliminated. Certainly, given their setback on health reform, the Republicans will be keen to enact something for “a win,” but tax reform, historically, has been a noisy and crowded battlefield among competing special interests. Expect a slog, and color us a bit skeptical on the prospects for a big reform package.

Market reaction to the failure of health care reform has been muted. Stocks declined modestly in their first trading session of the week, and interest rates were broadly unchanged. Following its early post-election advance, the “Trump rally” has shown signs of cooling in the last few weeks. Still, the overall stock market has shown impressive resiliency. The economy is improving, both here and abroad, and the earnings slowdown of the last two years is believed to be over. (We’ll get our first look at earnings in the next few weeks, following the end of the first quarter.) Too, investors remain expectant that the Trump administration will achieve tax and regulatory changes that will help to stimulate economic growth.

Will President Trump pivot toward the Democrats to resurrect health care reform? This is an intriguing possibility. Our view is that the President is, shall we say, flexible in what he believes, and what he would support. We believe his mindset is less about doctrine and more about getting things done, and his defeat on AHCA came about from conservative opposition. For the moment, the President has said he is willing to let Obamacare collapse unto itself, from unsustainable premium and deductible trends in its coverage markets— essentially, waiting for the Democrats to cry Uncle. There are limits, both political and moral, to such a plan. Eventually, it’s possible that a reform deal gets done on a bipartisan basis. Our country’s fractious politics make such a notion seem improbable, but time and again in this political cycle, President Trump has upended prevailing conventional wisdom.

As always, your comments and feedback are most welcome.

With regards, Scott C. McCartney, CFA Partner

Christopher Lai, CFA Portfolio Manager

Share:

Previous

Market Currents- 03/28/2017

Next

Market Currents- 05/16/2017

Related Posts

2019 Wrap-Up
January 7, 2020
2019 Wrap-Up
No Comments
Market Currents – 11/11/19
November 11, 2019
Market Currents – 11/11/19
No Comments
Market Currents – 7/19/18
July 19, 2018
Market Currents – 7/19/18
No Comments

Leave a Comment Cancel reply

Your email address will not be published. Required fields are marked *

Archives

  • January 2021
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • October 2017
  • September 2017
  • July 2017
  • May 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • August 2016
  • July 2016
  • June 2016
  • April 2016
  • February 2016
  • January 2016
  • November 2015
  • September 2015
  • July 2015
  • January 2015
  • November 2014
  • September 2014
  • May 2014
  • October 2013
  • June 2013
  • November 2012
  • May 2012
  • March 2012

Recent Posts

  • David versus Goliath
  • Market Currents – 1/25/21
  • Giving Thanks and Feeling Hope

Contact Us

  • Address
    NEW HARTFORD: 89 Genesee Street | New Hartford, NY 13413 | 315.624.7300

    ELMIRA: 1225 W. Water Street, Suite 1 | Elmira, NY 14905 | 607.734.2002

    SARATOGA: 16 Lake Avenue | Saratoga Springs, NY 12866 | 518.306.4220
  • Home
  • Investing
  • Planning
  • 401(k)
  • Team
  • Contact Us
  • Terms of use

Recent Posts

  • David versus Goliath January 29, 2021
  • Market Currents – 1/25/21 January 25, 2021
  • Giving Thanks and Feeling Hope November 25, 2020
  • Market Currents- 11/13/2020 November 13, 2020

Login To Your Fidelity Account

Copyright © 2021 Ascent Wealth Partners. All Rights Reserved.