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Thread: Stocks that may benefit from the Affordable Care Act...

  1. #1
    Pompous Ass Hillbilly GregoryHouse's Avatar
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    Default Stocks that may benefit from the Affordable Care Act...

    As the bill — formally known as the Affordable Care Act and popularly referred to as Obamacare — starts to kick in, investors should watch a number of stocks that could either sink or soar.

    http://wallstcheatsheet.com/stocks/h...tml/?a=viewall

    The most obvious beneficiary of mandated healthcare will be hospital operators. As the U.S. healthcare system currently functions, many hospitals provide care to individuals without health insurance, and therefore they often are not compensated for their services. Under Obamacare, each individual will be required to purchase insurance if it is not already provided by their employers, so hospitals will be paid from the insurance companies, not uninsured individuals. This will both improve profitability for companies such as HCA Holdings and LifePoint Hospitals (NASDAQ:LPNT) and increase their business, as those who have insurance are more likely to go to a medical provider than those who do not.
    companies that work with EMRs — such as Cerner (NASDAQ:CERN) — will see business increase greatly.

    http://www.marketwatch.com/story/fiv...are-2012-12-17
    1. HCA Holdings Inc. /quotes/zigman/1545475/quotes/nls/hca HCA -0.71% : The largest hospital operator in the nation, HCA is in prime position to reap the rewards of Obamacare.

    As more individuals become insured, hospitals stand to wipe billions of dollars in bad debt off their books that they have incurred for years by treating uncovered indigent patients in their emergency rooms. For some hospitals, it amounts to as much as 20% of revenue. “That should drop significantly by covering the uninsured as long as states go along with the Medicaid provisions,” said Jeff Jonas, an analyst with Gabelli & Co.

    Due to its sheer size, HCA stands to gain more than most but it also is setting itself up to take advantage. The company operates 263 hospitals and surgery centers in 20 states. It also recently announced a secondary offering of shares, as a number of private investors are liquidating their stake in the company which has traversed in and out of the public market.

    http://online.barrons.com/article/SB...832318872.html
    Rather than trying to predict the rate at which the uninsured will sign up, however, investors can go with a sure thing: Medicaid. The government-sponsored health plan for the poor is undergoing its biggest expansion since it was created in the 1960s, providing an enormous boon for health insurers that specialize in Medicaid and Medicare. The big names in that space are Centene (ticker: CNC), Molina Healthcare (MOH), and WellCare Health Plans (WCG).

    "These companies can grow earnings 15% a year even without the Medicaid expansion from the Affordable Care Act," says Marshall Gordon, an analyst with ClearBridge Investments. "These are stocks with long runways." Rather than trying to pick the best value or strongest player among these three, investors might be better served by owning the basket – they should all benefit as their customer base expands.
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    Grumpy Old Fart The Yancey's Avatar
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    Default Re: Stocks that may benefit from the Affordable Care Act...

    I own stock in Labcorp (LH) and I expect that it will see an earnings increase from the ACA.
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    Grumpy Old Fart The Yancey's Avatar
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    Default Re: Stocks that may benefit from the Affordable Care Act...

    Tenet Healthcare (THC) was up 7% in a down market yesterday after announcing plans to expand into areas with large populations of uninsured. They are the third largest for profit hospital chain in the country.
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    Pompous Ass Hillbilly GregoryHouse's Avatar
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    Default Re: Stocks that may benefit from the Affordable Care Act...

    Quote Originally Posted by The Yancey View Post
    Tenet Healthcare (THC) was up 7% in a down market yesterday after announcing plans to expand into areas with large populations of uninsured. They are the third largest for profit hospital chain in the country.
    hmm...
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    Raisinballin' taylorssc's Avatar
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    Default Re: Stocks that may benefit from the Affordable Care Act...

    Look to pharmaceutical fund groups for growth. Getting in a little late right now though.

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    I'm Bad. I'm Nationwide! RGHoskins's Avatar
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    Default Re: Stocks that may benefit from the Affordable Care Act...

    Keep in mind it will be a short lived burst. Get what you can and get out fast.

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    Banned b381l's Avatar
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    Default Re: Stocks that may benefit from the Affordable Care Act...

    After all the dust settles, I'm not sure there will be any winners in the healthcare sector. Having said that, I have TR Price Health Sciences Fund.....although their top holdings are mostly biotech.

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    1st Team All-SEC yazoo's Avatar
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    Default Re: Stocks that may benefit from the Affordable Care Act...

    Is there a way to invest in the black market for health care?

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    Apparent Sunshine Pumper Gamecocks1137's Avatar
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    Default Re: Stocks that may benefit from the Affordable Care Act...

    If you want my opinion and I am sure you don't. HCA is one that I believe will continue to see positive growth for years to come, not just from this bill, but from the money they are about to make.
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    Damn Yankee TKE226's Avatar
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    Default Re: Stocks that may benefit from the Affordable Care Act...

    Tenet, imo, is not a long term stock to hold.

    If we ever convert to ICD-10, EMRs will become more important...

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