When President Obama was re-elected, shares of UnitedHealth (NYSE:UNH) and other life insurers fell immediately. Is Obamacare a death knell for health insurers, or is the market missing out on some of the opportunities the law presents? In this brand new premium report on UnitedHealth, we take the long term view, honing in on prospects for UnitedHealth in a post-Obamacare world. Below is free sample of what you can find in the full version.
Medicare and Medicaid
UnitedHealth offers Medicare Advantage plans in 30 U.S. states plus the District of Columbia, and Medicare Part D prescription drug benefit plans across the U.S. The company also participates in Medicaid managed care programs with 23 states and the District of Columbia.
The most important driver of Medicare enrollment growth is the aging of the U.S. population. The Department of Health and Human Services projects that by 2050 the number of Americans eligible for Medicare will more than double when compared to 2010 levels. In addition, the decade expected to see the largest growth, an estimated 33% increase in Medicare-eligible population, is the one we're currently in (2010-2020). If UnitedHealth achieves success in the Medicare managed care market, the company stands to benefit from these demographic trends.
Enrollment in Medicaid, a government health program for low-income families and those with certain disabilities, is also poised to see strong growth. The Affordable Care Act included provisions for a massive expansion in the Medicaid-eligible population. Although the Supreme Court ruled that states can opt out of this expansion, many states are moving forward with plans to increase Medicaid coverage.
We hope you enjoyed this short excerpt from our premium report on UnitedHealth. In the full version, we run through the key opportunities and threats facing the company, provide reasons to both buy and sell the stock, and include a full year of analyst updates to keep you covered as key news develops. Don't miss out -- simply click here now to claim your copy today.
Fool contributor Keith Speights has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend UnitedHealth Group. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.