The Patient Protection and Affordable Care Act, also known as Obamacare, has forced UnitedHealth Group (NYSE:UNH), WellPoint (NYSE:ANTM), and other health insurers to change the way they do business, eliminating pre-existing conditions and forcing minimum levels of coverage. But Obamacare has also opened the door to alternative providers of insurance, and one company in particular could reap the biggest rewards from potential customers who want more coverage than the Affordable Care Act will give them.
In the following video, Dan Caplinger, The Motley Fool's director of investment planning, notes that the market for voluntary insurance benefits looks like it could take off in the near future, leaving supplemental-insurance specialist Aflac (NYSE:AFL) to reap big profits. Aflac offers a wide range of supplemental policies that cover everything from specific diseases like cancer to special incidents like accidental injuries. Dan notes that many anticipate that workers will want more of these voluntary insurance policies as Obamacare imposes high out-of-pocket costs and deductibles. With rivals MetLife (NYSE:MET) and Prudential (NYSE:PRU) looking to get into the voluntary insurance business, Aflac has a head-start in leading the way toward greater profitability thanks to Obamacare.
Fool contributor Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends Aflac and UnitedHealth Group. It recommends and owns shares of WellPoint. 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.
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