The U.S. Supreme Court could rule on the constitutionality of the health care reform law as soon as Monday, said Jim Cramer on CNBC's "Mad Money."
Known as the Patient Protection and Affordable Care Act, the law has inspired both political and legal battles from the moment President Barack Obama signed it into law more than two years ago. It has been challenged by 26 states which contend the so-called individual mandate is unconstitutional. In March, the Supreme Court heard six hours of oral argument regarding the law. Although the high court will not say when it will rule on the case, published reports suggest it could happen next week.
"If the Supremes bless Obamacare entirely, I suspect we'll see a sharp sell-off as the health care law is a giant tax on the system and a transfer of wealth from the haves to the have-nots, Europe style," Cramer said. "If it's struck down, then I want you to think about buying companies that employ hundreds of thousands of people and don't pay for health care the way the new law of the land would require them to."
If the law is overturned, Cramer suggests investors buy shares of Paychex (PAYX), a provider of payroll, human resources and benefits outsourcing solutions for small to medium-sized businesses.
"I believe hiring could blossom if the law is struck down," Cramer said. "Yeah, you heard me, the health care law's a real job killer."
If the Supreme Court upholds the health care reform law, however, Cramer suggests investors buy shares of health care plan provider Unitedhealth Group (UNH) or pharmacy benefit manager Express Scripts (ESRX). Both companies positioned themselves to make a lot of money off the law, he noted.
-Reuters contributed to this report
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