While the debate rages on south of the border about the $938 billion health care reform bill signed into law today by President Obama, Ontario companies may wish to consider how this monumental change to U.S. health care policy could benefit their own business activity in the United States market.

The White House notes that affordable health coverage will now be extended to 31 million additional Americans who previously had to go without.  The bill also requires availability of coverage for those with pre-existing conditions.  If the U.S. Senate approves House changes to the bill that would take effect in 2014, individuals will be required to purchase health coverage or face fines.

As Diane Francis argues in her commentary today in The National Post, the changes do not solely respond to a moral imperative, but also address rising and unsustainable health care costs in the U.S. – affecting overall economic conditions in the world’s largest consumer market.  As Francis simply characterizes it, “That’s good news for Canada and others who rely somewhat on a successful United States.”   The U.S. consumer will no longer be as concerned about a big “what if” scenario, prompting individuals to stockpile money to pay for a serious illness down the road.  That’s money that otherwise would be invested back into the economy.  Of course, this argument assumes this is indeed happening with such regularity as to affect overall consumer spending levels.  Either way, the decline in U.S. household consumption since 2008 is unmistakable and anything to improve that situation is a positive thing.

Perhaps the most direct area of opportunity for Ontario arising from U.S. health care reform lies in the increased opportunities for Ontario’s exporting life sciences and medical devices sector.  From advanced biophotonics to diagnostic equipment and surgical tools, Ontario is already competing on the world stage with a solid reputation for innovative product development and expertise.  According to the Ministry of Economic Development and Trade, our medical devices industry already boasts over 600 companies with 22,000 employees and revenues of $4 billion annually.  The expansion of the U.S. health care market can only be good news for these companies and the growth of this knowledge-intensive sector in Ontario.