Though there are some obvious challenges facing the Obamacare exchanges, they are the portal that will lead an estimated seven million new enrollments to insurance providers. But with some of the big players, including Cigna (NYSE:CI) and Aetna (NYSE:AET) not participating, some of the smaller insurers are set to be the big beneficiaries of the exchanges. With Molina Healthcare (NYSE:MOH) already versed in working with governmental health care programs, it and the other participating providers could give your portfolio a nice shot of healthy returns in the coming years.
In the video below, Motley Fool contributor Jessica Alling discusses why some of the larger, better-known insurers are standing back, and why the smaller providers may be solid investments as Obamacare moves forward.
Fool contributor Jessica Alling has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.