The Surprising Winner From Obamacare You've Never Thought Of

The Motley Fool's Market Checkup drills down on the hottest headlines and biggest market movers in the health-care sector. This episode -- featuring a special guest appearance by Dan Caplinger, The Motley Fool's director of investment planning -- highlights a biotech stock that popped 40%, gives a full examination of the Affordable Care Act's debut week, and finishes off with two stocks poised to profit from Obamacare.

In the following video, Fool health-care analyst David Williamson talks to Dan and health-care bureau chief Max Macaluso about a surprising potential winner from Obamacare. While most investors are focused on pure health-insurance plays, David notes that Walgreen (NYSE: WAG  ) is quietly setting itself up to benefit from the big increase in health-care demand that's likely to result from the Patient Protection and Affordable Care Act. With millions of Americans getting insurance coverage for the first time, David believes that prescription spending will boost Walgreen's prospects, as drug coverage will help more people be able to afford drugs that they might otherwise have abandoned, such as VIVUS's (NASDAQ: VVUS  ) obesity drug Qsymia.

David also discusses Walgreen's health-care clinic initiative, joining CVS Caremark (NYSE: CVS  ) and Rite Aid (NYSE: RAD  ) in bringing health care directly to customers. Yet, Walgreen has a big scale advantage over Rite Aid and CVS Caremark, as it's poised to become the largest buyer of prescription drugs and medical products, and its deal with AmerisourceBergen  (NYSE: ABC  ) is helping it become more vertically integrated. David concludes that Walgreen has plenty of growth potential to produce solid returns for investors in the future.

Learn more about other winners from Obamacare
The Affordable Care Act is rewriting the rules for the health-care industry, and Walgreen isn't the only potential winner from the legislation. Find out more about the stocks that could benefit the most from Obamacare in the Fool's special report on the Affordable Care act, in which our top experts walk you through these opportunities and the companies that are positioned to exploit them. To access this free report instantly, simply click here now.


Read/Post Comments (22) | Recommend This Article (7)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On October 05, 2013, at 1:49 PM, wallscreet wrote:

    I was guessing someone who is sick and needs medical care.

  • Report this Comment On October 05, 2013, at 2:06 PM, davidzzz wrote:

    Hillary/Davis 2016 Yea!!!

  • Report this Comment On October 05, 2013, at 2:35 PM, jackdiane888 wrote:

    There are no winners for obamacare. check it out on facebook. far from affordable and deductibles are sky high

  • Report this Comment On October 05, 2013, at 3:03 PM, Jamro wrote:

    Ever notice that the American People are never the winners when it comes to Obamacare?

  • Report this Comment On October 05, 2013, at 6:08 PM, LibertyLane wrote:

    I knew the winner wasn't going to be the American taxpayer.....not surprised it's wall street.

  • Report this Comment On October 05, 2013, at 6:09 PM, Dayo2 wrote:

    America is 38 down among 45 top nations for medical. The biggest reason is profiteers controlling out medical buildings and all personal in them including the Doctors, if you watch 60 minutes, YouTube, and many others episodes you will see the conclusion. Because of the no longer competiveness profiteering in medical as in the 50's, America is going way down further with the profiteers having complete control over our doctors.

  • Report this Comment On October 05, 2013, at 6:16 PM, Barmil wrote:

    Big business is always the winner, Insurance companies are not doing this because it is right it because there is profit to be made.

    Pharmaceutical companies are in it because they don't have deal with the public any more and team up with the insurance companies.

    And lastly the politicians who wrapped this caveat up with a ribbon and presented this to the powers that be and said show me the money!

  • Report this Comment On October 05, 2013, at 6:26 PM, govtisscum wrote:

    How many F'in articles is Yahoo and everybody else going to come up with for Obamacare. I don't care about Obamacare, the Affordable Health Care or whatever else they're calling this extortion plan. I don't know why they picked Affordable Care. It isn't affordable at all to the point where many more people will now have no insurance.

  • Report this Comment On October 05, 2013, at 6:27 PM, DunkVT wrote:

    How people can conclude that there are no winners with Obamacare obviously have no interest in seeing it succeed. Sad, when healthcare in America is so costly (18 percent of GDP), one would think that people would be offering thoughtful, researched improvements to the ACA over the months ahead. Instead, they are rooting for failure. What are we witnessing in America?

  • Report this Comment On October 05, 2013, at 6:39 PM, LowenLowen wrote:

    Actually a number of stock might go up pursuant to Obamacare. The fact remains that Obamacare is bad for America.

    Motly Fool rightly tries to spot the areas where profit can be made - but this pales in comparison to the economic disaster that Obamacare is, so no matter how much profit can be derived from such stocks these gains may be entirely negated by the costs and penalties imposed by that disastrous statute.

  • Report this Comment On October 05, 2013, at 7:06 PM, republicaneagle wrote:

    Obama is the winner. NO surprise!

  • Report this Comment On October 05, 2013, at 7:12 PM, BarryLHartmann wrote:

    How's that change working for us after all. sorry but I am not drinking the koolaid. I will pay the $96.00. I pay way too much tax now. I will not make the insurance companies rich.

  • Report this Comment On October 05, 2013, at 7:36 PM, amasters70 wrote:

    I can't afford health insurance through work because it's too expensive. I live paycheck to paycheck. Nothing left over. But, I don't qualify for the subsidy in obamacare either. I will take the fine. Eventually, I will lose everything because of the fines and penalties. I am sure there are others in my situation as well. This cannot help our already troubled economy. So much for hope and change you can believe in !

  • Report this Comment On October 05, 2013, at 7:44 PM, DunkVT wrote:

    You will definitely lose everything if you have a serious illness with no insurance. And really, do you expect others to pay your tab?

  • Report this Comment On October 05, 2013, at 7:46 PM, DunkVT wrote:

    So let's see, the American economy heading for a modern day depression when he enters office to today's economy. Although not yet out-of-the woods, you call Obama an economic disaster?!! Thankfully 5 million more Americans thought otherwise in the last election.

  • Report this Comment On October 05, 2013, at 7:49 PM, Itsjustmeagain wrote:

    The initial AHA proposal was using a Single Payer System just like Medicare for all. Costs were funded via a tax like the current Medicare. But the Republicans wanted nothing to do with it if it bypassed the Insurance Industry so through negotiations (which they deny) it was changed to the exchanges.

    A single payer system has been studied extensively, look at U of Mass at Amherst who did a study for Maryland. Single payer system has an overhead of less than 4% which means $96 of each $100 collected was a direct payment for medical services. The very best an insurance company can do is 16%, often over 25%. There are no battalion of clerks finding a reason to deny or kick you off. Share holders must be satisfied as well.

    More and more States are now considering a Single Payer System. It will be the standard, a policy you can carry from State to State with full coverage, something that will not be possible with many of the Exchanges.

    The Insurance industry, sponsored by the Republican party is the winner, not the American people, we're just chattle. Do your homework and STOP blindly following the losers.

  • Report this Comment On October 06, 2013, at 2:34 AM, sypoth wrote:

    Wall street and insurance companies were a given when the thing was written by them for them. Obamacare is a joke and more than 4 out of 5 U.S. citizens know it, the other ones either haven't read it, are blinded by party fealty, stupid, or are looking to profit from it.

  • Report this Comment On October 06, 2013, at 7:31 AM, ElBischoff wrote:

    so a giant corporation is going to benefit from Obamacare/healthcare in general? get outta here!

  • Report this Comment On October 06, 2013, at 9:54 AM, prginww wrote:

    COSTCO has the best prices for medications, CVS the highest, 10 times higher. Healthy diet and lifestyle are more effective than medicines and medical procedures. Are you smarter than the rest? The longest average life expectancy (90 years) and highest wages in the World is in Luxembourg. 95% of population work in financial industries. Would you like to move there and live off Motley Fool stocks?

  • Report this Comment On October 06, 2013, at 10:24 AM, DunkVT wrote:

    Single payer was an alternative route but if you think the Right are crazed now, can you imagine how they would have behaved under a Single Payer system? Let's be realistic, big Pharma, bio-tec companies, hospitals and insurers would not have supported any change in America healhtcare if they were scheduled to lose money. Just a fact.

  • Report this Comment On October 06, 2013, at 10:26 AM, DunkVT wrote:

    We'll see how people feel about ACA after they have tried it. My bet is all the big money that has gone to TV ads railing against it will move on to another subject once Americans start supporting the ACA.

  • Report this Comment On October 06, 2013, at 11:13 AM, AlexKalman wrote:

    The insurance plan offered is the worst plan available at a sky high price. The politicians beat up the medical plans and gave the name Obama Care to make you hate him. No one will actually have a useful plan unless you are gravely ill. So Rite Aid, Wallgreen and CVS will suffer as less money will trickle down and more funds will flow to afford the health insurance plans that pay very little and make the insurance companies move the funds to help pay for the older insured that are on adjunct Medicare plans. The winners of Obama Care are the people age 65 and older on Medicare and the US Government.

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