Insurer Earnings Soar As Obamacare Looms

Both WellPoint and UnitedHealth Group reported strong earnings that beat Wall Street expectations, but both are cautious heading into the Affordable Care Act's full implementation in 2014. Increased membership and declining medical costs saw full-year earnings guidance improve, powering both stocks higher. 

However, on their respective conference calls it wasn't just positive earnings surprises and guidance raises. Management has distinct concerns over the impact that decisions coming from Washington, D.C., will have on their business. Specifically cuts to the Medicare Advantage program weighed heavily, but both companies see opportunity in Obamacare as well.

In this video, health-care analyst David Williamson discusses the quarterly highlights, key takeaways from each company's conference call, and whether investors should be optimistic about their company's performance for this year and next.

Still in the dark about how Obamacare might affect you and your portfolio? Don't worry -- you're not alone. To help prepare investors for the massive changes coming to the American health care system, The Motley Fool created a special free report that makes this complex topic easily understandable. Download "Everything You Need to Know About Obamacare" and discover how the law may affect your taxes, health insurance, and investments. Click here for your free copy today.


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  • Report this Comment On July 28, 2013, at 7:15 PM, donnie1954 wrote:

    I've found the answer! How to pay my health insurance premiums! Invest heavily in health insurance companies and pay my premiums out of the earnings!

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