This episode of The Motley Fool's Market Checkup features a 20% biotech pop, big changes coming to two big pharma stocks, and the Affordable Care Act's October 1 insurance exchange debut.
In this video, health-care analysts David Williamson and Max Macaluso discuss Obamacare's big day as the state-based insurance exchanges launched. These exchanges are one of the health law's three key pillars -- the others being no discriminating by insurers for pre-existing conditions and the individual mandate, which requires everyone to purchase insurance. However, the exchanges are a market mechanism and their success isn't something the government can simply decree.
Although the launch may have been overshadowed by other news coming out of Washington, D.C., reports of widespread glitches and website failures were intertwined with those of heavy user demand for the exchanges. If that popularity proves sustainable, it vindicates WellPoint's exchange strategy. Eschewing the caution of its competitors, WellPoint is looking to build the largest exchange footprint in the industry and capture a large group of new customers.
David and Max take a closer look at the reports surrounding the launch day, whether it should be considered a success or failure for Obamacare, and what today's news means for the insurance industry.
