Land of Confusion Many Americans
are confused about the impact of the Affordable Care Act, commonly referred to as Obamacare. This confusion has led to several misunderstandings about the law. Here are 7 myths about Obamacare that linger still. Source: Wikimedia Commons
No. 7 – Obamacare achieves
universal coverage There isn’t universal coverage with Obamacare. The reality is that, while millions of currently uninsured Americans will gain coverage, the nonpartisan Congressional Budget Office projects that 31 million individuals will not have health insurance even after full implementation of Obamacare.Source: Wikimedia Commons
No. 6 – Obamacare is
a federal takeover of health insurance Do you really think UnitedHealth Group’s (NYSE:UNH) stock would have more than doubled and Humana’s (NYSE:HUM) shares would have nearly doubled since Obamacare passed if the feds truly took over health insurance? More federal involvement? Yes. Federal takeover? No. Source: YCharts
No. 5 – “If you
like your health care plan, you can keep [it]” President Obama said this in 2009. He later clarified that he meant that the federal government wouldn’t force people to change health plans. However, some people still misinterpret the comments to mean that no one would lose his or her current insurance under Obamacare. Source: Wikimedia Commons The reality is that there will be some exceptions. For instance, UPS (NYSE:UPS) recently cut coverage for 15,000 spouses , saying the move was a direct result of higher costs due to Obamacare.
No. 4 – Obamacare harms
Medicare It is true that Obamacare limits future growth of Medicare by reducing payments to insurers. However, this move actually helps preserve the viability of Medicare for a longer period. Obamacare will hurt a small portion of Medicare beneficiaries. Around 5% of higher-income Medicare enrollees will pay more for prescription drugs under Obamacare. Source: Wikimedia Commons
No. 3 – Obamacare will
be “business as usual” for businesses Obamacare has varying effects on businesses – not all bad and not all good. Some big employers will incur higher costs. Delta Airlines (NYSE:DAL), for instance, recently sent a letter to an Obama administration official that said Obamacare would cost the company around $100 million in 2014 alone. On the other hand, hospital chains eagerly anticipate the beneficial impact expected from the law. Source: Wikimedia Commons
No. 2 – Obamacare “death
panels” could deny care to patients The real story is that Obamacare establishes the independent payment advisory board, or IPAB, with the charge to recommend cost-saving measures for Medicare. The IPAB is specifically prohibited from rationing health care. Its proposals don’t automatically go into effect. The Secretary of Health & Human Services must approve any recommendation. Source: Wikimedia Commons
No. 1 –Health care will
be more affordable for everyone Obamacare does make health insurance more affordable for many. Some states, like California and New York, could experience lower-than-expected premiums. However, it also makes insurance more expensive for some. Younger individuals are expected to pay more for health insurance than they would have without health reform. Some states will see significantly higher rates. Florida and Ohio residents, for example, could see their insurance rates jump 35% and 41%, respectively, due to Obamacare.
Obamacare presents opportunities for investors
There are some investing realities about Obamacare beyond the myths. Hospitals could benefit from millions of newly insured patients. Insurers have positioned themselves to take advantage of the Medicaid expansion included in the law. There are positives and negatives with any major government action. Wise investors will learn how to cut through the confusion and prosper from the positives.
By investing in a handful
of specific health care stocks, you too can profit from Obamacare. In this free report, our analysts walk you through these opportunities and the companies that are positioned to capitalize on them. The informational edge contained in it is invaluable, but can only be exploited profitably while the rest of the market remains in the dark. To access this free report instantly, simply click here now.