UNH Stock Response to Obama Care Problems

By
www.ProfitableInvestingTips.com

 The Affordable Care Act is a laudable attempt to fix

many issues relating to affordable access to medical
care.

http://www.profitableinvestingtips.com/stockinvesting/unh-stock-response-to-obama-careproblems

 And the news is full of the problems related to the

roll out of the system.


 Insurance companies and Health Maintenance

Organizations are central to the Affordable Care Act
as these companies have had to rewrite their
insurance plans both for what items are
covered, how much plans will cost, and the types of
copayments that will be included.


 From an investing viewpoint we look at a possible

UNH Stock Response to Obama Care problems.


 UNH is the stock symbol for United Health.


 Along the way to the kickoff of Obama Care roughly

five million health insurance subscribers were told
that their health insurance plan no longer existed
and that they needed to buy another, by way of the
Affordable Care Act website.


 The site is in the news because of programming

errors.


 Now we hear that letting people have the option to

stay with their current plan is creating a nightmare
for insurers.


 Our question for investors to consider as an example

of investing in this sector is what will be the UNH
stock response to Obama Care problems.


 How does one do fundamental analysis of UNH and

other related stocks when the Obama Care marching
orders seem to change day by day?


What is UNH?


 Paraphrased from Google Finance this is a

description of UNH:


 UnitedHealth Group Incorporated (UnitedHealth Group) is a

diversified health and well-being company. The Company
operates in four segments: UnitedHealthcare, which includes
UnitedHealthcare Employer & Individual, UnitedHealthcare
Medicare & Retirement and UnitedHealthcare Community &
State; UnitedHealthcare Community & State; OptumHealth;
OptumInsight, and OptumRx. The Company operates these
businesses across eight markets: integrated care
delivery, care management, consumer engagement and
support, distribution of benefits and services, health financial
services, operational services and support, health care
information technology and pharmacy.


 United Health Group started out as a physician

based health maintenance organization (HMO) in
Minneapolis.


 It has morphed bit by bit into a major player in the

health insurance market.


 The company saw the opportunity for profit in the

HMO business but operated in Minnesota where it is
illegal for an HMO to be a for profit enterprise.


 The company broke up into a health treatment arm

and a management arm.


 The management arm is now a national entity and

provides information and management services to
many other health insurers and HMO’s.


UNH Stock Response

to Obama Care
Problems

 It is a major player in helping insurers decide how to

set up their plans and payment options under
Obama Care and has spent a significant amount of
money setting up computer systems to track care
and payments.


 If Obama Care gets scrapped as most the

Republican Party and many voters wish UNH will
have wasted a lot of money on nothing.


 It will have to rewrite many of its own plans and will

have to generate information to help its own clients
readjust to a post Obama Care world.


 Or if the system is merely modified UNH will have to

readjust as needed.


UNH Stock


 In the last 15 years UNH grew from a $4.50 stock to

a $75 stock with three two for one splits along the
way.


 The stock reached $60 in 2005 but fell to the $20

range with the 2008 market crash.


 It has since grown steadily back to its $70 + niche.

When the Obama Care rollout proved to be faulty the
stock fell below $70 but has since recovered to
nearly $72.


 From the viewpoint of value based stock investing

this company is well established in each of it niches
which gives it a good margin of safety and as it
profits from both increased dollars spent on health
care and savings on health care it has good intrinsic
value.


 However, in the short term the UNH stock response

to Obama Care problems could be bumpy with
repeated drops.


 If one believes that the company will prosper long

term it might be wise to profit from a stock selloff by
purchasing the stock on each retreat.


UNH Stock Response to Obama Care Problems

Recommended

Recommended

More Related Content

More from InvestingTips

More from InvestingTips (20)

Recently uploaded

Recently uploaded (14)

UNH Stock Response to Obama Care Problems