Want proof that healthcare stocks are poised to reap rewards from Obamacare?
Just take a look at this recent blockbuster healthcare merger.
Giant managed care firm WellPoint Inc. (NYSE: WLP) announced July 9 that it would buy Amerigroup Corp. (NYSE: AGP), the country's largest private Medicaid managed care company, for $4.9 billion in cash.
The day acquisition was announced, Amerigroup stock jumped 38%.
Of course, healthcare mergers and acquisitions (M&A) are nothing unusual. But a close look at this deal sheds light on the direction of the next major trend of consolidation within the industry.
In fact, when it narrowly upheld the Affordable Care Act (informally known as Obamacare), the Supreme Court unwittingly set the table for a new wave of M&A in a downtrodden healthcare space --Medicaid.
Government-sponsored programs like Medicaid and Medicare have traditionally been viewed as ho-hum businesses with razor-thin profit margins.
So why is WellPoint jumping with both feet into a business that is typically not a big money maker?
Let's take a closer look...
obamacare explained
Article Index
Healthcare Stocks: Mergers Show How Obamacare Will Deliver Profits
To continue reading, please click here...
How the New Healthcare Tax Affects You
The Supreme Court recently upheld the Affordable Care Act (ACA), or Obamacare, sparking concern in the United States about the future of healthcare tax.
Even though some people argue the healthcare law is not a tax but instead a penalty, right now it's been ruled the former - and has become one of the key issues in Election 2012.
In a July 12 poll by Quinnipiac University in Connecticut, 55% of American voters said ACA is a tax hike. But it doesn't necessarily mean they are against it.
Interestingly, 48% agreed with the U.S. Supreme Court decision to uphold the law, while 49% believe that the U.S. Congress should repeal it.
In addition, 55% of American voters said a presidential candidate's position on health care is "extremely important" or "very important" to their November vote. Those who think Obamacare breaks the president's promise of not raising taxes could be lured to a GOP presidential vote.
Peter Brown, assistant director of the Quinnipiac University Polling Institute, said in a press release, "President Barack Obama has worked mightily to avoid the 'T' word, but most American voters say the ACA is in effect a tax hike. The big question is whether the Republicans can sell the idea to voters that the president's Affordable Care Act breaks his promise not to raise taxes on those who make less than $250,000. That's why what voters believe on this issue matters."
Whether it is a tax or a penalty, either way people are going to have to pay.
Even though some people argue the healthcare law is not a tax but instead a penalty, right now it's been ruled the former - and has become one of the key issues in Election 2012.
In a July 12 poll by Quinnipiac University in Connecticut, 55% of American voters said ACA is a tax hike. But it doesn't necessarily mean they are against it.
Interestingly, 48% agreed with the U.S. Supreme Court decision to uphold the law, while 49% believe that the U.S. Congress should repeal it.
In addition, 55% of American voters said a presidential candidate's position on health care is "extremely important" or "very important" to their November vote. Those who think Obamacare breaks the president's promise of not raising taxes could be lured to a GOP presidential vote.
Peter Brown, assistant director of the Quinnipiac University Polling Institute, said in a press release, "President Barack Obama has worked mightily to avoid the 'T' word, but most American voters say the ACA is in effect a tax hike. The big question is whether the Republicans can sell the idea to voters that the president's Affordable Care Act breaks his promise not to raise taxes on those who make less than $250,000. That's why what voters believe on this issue matters."
Whether it is a tax or a penalty, either way people are going to have to pay.
To continue reading, please click here...