Cigna Corp CI

In a 7-2 decision, the U.S. Supreme Court voted to uphold the Affordable Care Act. This was largely expected by us and, in our opinion, the rest of the market. This time around, the court ruled that the complaining parties were not sufficiently harmed by the ACA's individual mandate, which was reduced to $0 by the Republican-controlled Congress as part of tax legislation in 2017. Because this court's ruling (or one based on the severability of the individual mandate from the rest of the ACA) was largely expected by us, we are making no changes to our moat ratings or fair value estimates for the narrow-moat health insurers we cover: Anthem, Centene, Cigna, CVS, Humana, and UnitedHealth. However, the ruling does add some certainty around this law that touches so many parts of the U.S. healthcare system.