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Obamacare's Medicare Cuts: Cause for Celebration

By Dave Williamson – Feb 24, 2014 at 6:54PM

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When do you celebrate bad news? When it's not as bad as the terrible news you were expecting.

Health-insurance stocks have been under a lot of pressure recently. Though fourth-quarter results weren't great for many, the downward pressure can be much more closely attributed to several CEOs in the industry showing grave concern for larger-than-anticipated Medicare cuts. The cuts were expected to be in the 3%-4% range, but large insurers had reached the point of expressing fear over much steeper cuts of 6%-7%. Today came the moment of truth, with the cuts falling in line with original expectations, at 3.55%.

In this video, Motley Fool health-care analyst David Williamson takes a look at which of the large insurers are the most exposed to Medicare Advantage, and which are benefiting the most from the lower-than-expected cuts today.

David Williamson owns shares of UnitedHealth Group. The Motley Fool recommends UnitedHealth Group. 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.

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UnitedHealth Group Stock Quote
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