An Act brought about in the senate to enable nearly fifty million Americans access medical services at affordable prices. In May 2010, President Barack Obama signed the reform made to the Affordable Care Act so that people troubled by raising costs can get access to health services (The Act can be accessed at:http://housedocs.house.gov/energycommerce/ppacacon.pdf). 

The future of this Act was left in the hands of Supreme Court when the Act was challenged on the grounds of constitutionality. The decision was given out in the ratio of 5:4, with four judges dissenting. The majority judges thought that the Act was required to improve the healthcare situation of the country (A well-written review of the judgment can be accessed at: http://cascadepolicy.org/pdf/pub/12-28_Jason_Mercier-Policy_Judgement_Health_CarePDF.pdf).

With a reference to this judgment Oppenheimer analyst Michael Wiederhor said, "With or without healthcare reform, the Medicaid business is extremely lucrative and offers big growth potential”. "A lot of states already want to move their business to Medicaid HMOs. But the Affordable Care Act (healthcare law) would further expand the business, so you get a double bonus."

Shortly after the judgment, the deal about Wellpoint and Amerigroup was announced. Wellpoint Inc. is buying Amerigroup for $4.46 billion. Wellpoint has set the share price at $92 per share of Amerigroup which is at a premium of almost 43%, hence the shareholders remain content with the offer. The union of the two corporations seeks to serve 4.5 million more people under the Healthcare Law.

In an interview in 2010, Mrs. Braly said, “It's hard to see how WellPoint could be to blame for surging health spending, when 85 cents out of every premium dollar or more is paid out in the actual cost of care, doctors, hospitals, suppliers, drugs, devices”, while defending the position of a health insurance corporation.

On this judgment, the Republicans highlighted the tax increase by this healthcare law. They claim the tax factor has been underplayed and it needs to be duly clarified. Another setback to this law may be that the court has not mandated the states to enact laws in pursuance of this act. Some states like Texas, Florida and Louisiana have said that they would not take steps to implement the law as it still seems unconstitutional to them. This acquisition of Wellpoint and Amerigroup is being considered a start to the trend. It is being said that in coming years more of such acquisitions could be seen.