The Key Obamacare Benefit Most People Ignore

The Patient Protection and Affordable Care Act, better known as Obamacare, is leading to millions of people getting insurance coverage who previously didn't have it. Many have pointed to the profit potential that insurance companies WellPoint (NYSE: WLP  ) , Aetna (NYSE: AET  ) , and other major carriers are reaping from Obamacare. But for the general public, getting coverage means more than just making smaller copays for service. It also puts insurance companies on your side in negotiating deals with Tenet Healthcare (NYSE: THC  ) , Universal Health Services (NYSE: UHS  ) , and other health-care providers who routinely charge much higher amounts to patients covering their own medical bills than they receive from insurance companies like WellPoint and Aetna.

In the following video, Fool health-care analyst David Williamson and Fool director of investment planning Dan Caplinger further analyze this key advantage that Obamacare is making available to those who otherwise wouldn't have health insurance. Dan notes that in many cases, the huge savings from these managed care arrangements far exceeds the value of the health services people receive under their policies. As insurance companies become more powerful, it means hospital companies become more at risk of adverse negotiated deals. David points out that the same services can have vastly different costs even within the same city, let alone in different areas, making it even more important to have insurers of national scope fighting for you. The cost savings help insurance companies as much as they help you, and the alignment of interests there is a key part of what drives Obamacare's potential success.

Find out more about Obamacare and how it affects you
Like it or hate it, Obamacare is something you need to understand. Fortunately, we've boiled down Obamacare to its simplest provisions, and in only minutes, you can learn the critical facts you need to know in a special free report called "Everything You Need to Know About Obamacare." This free guide contains the key information and money-making advice that every American must know. Please click here to access your free copy.


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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 March 02, 2014, at 11:48 AM, desuhu wrote:

    I will never believe that insurance companies are fighting for the consumer. Insurance companies are only interested in their bottom line.

  • Report this Comment On March 02, 2014, at 4:06 PM, TheMoogly wrote:

    My insurance company, Aetna, is notorious for negotiating low pay to the care providers. That is why I had a heck of a time finding professionals who were willing to accept Aetna's pay. I predict a lot of doctors getting out of the doctoring business.

  • Report this Comment On March 02, 2014, at 5:46 PM, Dayo2 wrote:

    YouTube First Robotic surgery center in Dominican republic

    Type this on your computer and see how other countries are way ahead of the United States. Many Americans are also flying down for many surgeries that is very highly better than the U.S. and 12 times cheaper. Also get on Fox News and many others. The one percent is in charge of our Doctors and destroying American's Medical procedures.

  • Report this Comment On March 03, 2014, at 10:32 PM, TerryFlowers wrote:

    HR 676 = Healthcare Equality

    The Affordable Care Ace (ACA) or Obamacare is not the solution to our nation's healthcare challenges. Neither the Republicans nor the Democrats seem to have any real answers. Healthcare costs have been spiraling out of control for over three decades and something has to be done before it gets to the point that very few of us will be able to afford medical care. ACA may have slowed the rise in healthcare costs but it continues to rise faster than the rest of the economy.

    The only real solution for our nation is to remove the profit from the bottom line. All too often it is the patient that suffers as profit becomes the priority.

    HR 676 is a single-payer, true universal healthcare plan. It would leave the medical providers as the owners and operators of their practices in the private sector as not-for-profit entities. It would eliminate the need for the for-profit healthcare insurance industry. The program would be paid for by increasing the Mediare tax to 4.5% (would be less than what most of us pay in insurance premiums now). Businesses would see their taxes rise as well (again would be less than what they pay out in employee healhtcare benefits currently).

    HR 676 wouild provide comprehensive medical care at no cost to the patient and would include medical, dental and vision. No co-pays, no deductibles, no out-of-pocket medical expenses. This would eliminate the bankruptcies and foreclosures that are the result of medical bills.

    HR 676, sometimes referred to as Improved and Expanded Medicare for All, would usher in true healthcare freedom, equality and justice. Research it for yourself. There are a number of excellent web sites that have a wealth of information. www.pnhp.org and www.healthcare-now.org and www.mforall.org are some of my favorites.

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