Will This Obamacare Rule Hurt Baby Formula Sales?

A new Affordable Care Act rule aims to help mothers embrace breast feeding instead of using baby formula. Will this hurt infant nutrition companies?

Brenton Flynn
Brenton Flynn
Mar 12, 2013 at 6:00PM
Health Care

At more than 900 pages in length, the Affordable Care Act is a massive piece of legislation. While a few provisions of the law get the lion's share of attention, laws don't get that long without at least a few obscure provisions finding their way into the final version.

In the following video, Brenton Flynn highlights an Obamacare rule that's meant to promote the adoption of breastfeeding with new mothers. With employers now required to accommodate new mothers with dedicated rooms, and insurers mandated to cover specialized consulting services and equipment rental, it's a provision that just might put a dent in the sales of companies selling infant formula like Abbott Labs (NYSE:ABT) and Mead Johnson Nutrition (NYSE:MJN).