Why a Perfect Storm Is Brewing in Healthcare

12/21/15 03:19PM EST

Why a Perfect Storm Is Brewing in Healthcare - z storm

In recent weeks politicians and the media have been preoccupied with ISIS, Donald Trump and “Star Wars: The Force Awakens,” marking a major shift in attention away from Obamacare. After dominating the media cycle with its rocky start, including crashing enrollment websites, Republican votes to repeal the legislation (61 votes so far), and damning forecasts of spiraling costs, millions of previously chronically uninsured people now have access to medical care. It is not an understatement to make the claim that lives were likely saved as a result of Obamacare, but alas our collective attention is on to different things these days.

Why a Perfect Storm Is Brewing in Healthcare - tobin aca

The benefits to these newly insured are clearly significant. Studies have shown 30 – 50% reductions in mortality from having health insurance, not to mention reduced fear and anxiety, and the potentially ruinous financial burden that comes from going without insurance. But the benefits don’t just stop with the individuals the legislation helped. The Affordable Care Act created legions of newly minted medical consumers which benefited the bottom line of the companies that cared for them, their executives, and investors who enjoyed incredible stock returns.

For investors who bet on healthcare stocks during the roll out of the ACA, the portfolio returns have been stellar...

* * *

Click here to continue reading Tobin's Healthcare piece on Investopedia. 

© 2024 Hedgeye Risk Management, LLC. The information contained herein is the property of Hedgeye, which reserves all rights thereto. Redistribution of any part of this information is prohibited without the express written consent of Hedgeye. Hedgeye is not responsible for any errors in or omissions to this information, or for any consequences that may result from the use of this information.