Obamacare Expands: What You Need to Know

CBO estimates that Obamacare will cost $104 billion less than initially projected. But that isn't the most important number for investors.

Apr 19, 2014 at 11:00AM

On Tuesday, the CBO issued a report on Obamacare and its reduced (but still substantial, at $1.4 trillion) cost. The report also included some very interesting numbers investors interested in the Obamacare health care mega-trends should watch carefully.

The report predicts that Medicaid will enroll an additional 7 million members by 2014 due to the Obamacare Medicaid expansion. That's good news for Medicaid insurers, but that good news continues -- the CBO expects Medicaid enrollment to almost double again by 2018. The insurance exchanges are expected to enroll a net of 6 million new people in 2014 (numbers that are not directly comparable to current enrollment in the exchanges). But by 2015, that number is expected to double to 13 million. And in 2016, the CBO expects another double (or close enough) -- to 24 million.

But what about sicker people skewing the risk pools? The CBO expects the risk adjustment, reinsurance, and risk corridors -- which were created to assure that insurers neither made nor lost too much money on the exchanges -- to be budget-neutral. What this means is that the CBO expects that the government will pay out as much money to insurers for worse risk pools as it takes in for insurers making too much money on the exchanges. Put another way, the CBO does not appear to expect that insurers will make or lose too much money from the exchanges.

In this video from Tuesday's Market Checkup, Motley Fool health care analysts David Williamson and Michael Douglass discuss the investing takeaways from the CBO report and the stocks most likely to benefit from this health care mega-trend.

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4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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