Many Americans have worried that Obamacare could cost too much. But older adults have largely benefited from the Patient Protection and Affordable Care Act's provisions. What's behind the boon for the near-retiree generation within Obamacare?
In the following video with Dan Caplinger, the Fool's director of investment planning and author of the special free report "Everything You Need to Know About Obamacare," Motley Fool health-care bureau chief Max Macaluso talks with Dan about the opportunities older Americans will get from Obamacare coverage. Dan notes that historically, older adults have to deal with more expensive health-care needs and pre-existing conditions that have allowed insurance companies in the past to deny coverage. Under Obamacare, though, limits on pre-existing-condition denials and tighter restrictions on big premium differences between younger and older policyholders should help cut their costs.
These benefits come with risks, though. Dan and Max discuss how Obamacare relies on a representative cross-section of participants, and how older adults need enough younger participants to make the program economically viable. If that doesn't happen, it could cause problems, including higher premiums down the road. Dan concludes by suggesting investors should look at UnitedHealth Group (UNH 0.52%) and Cigna (CI +0.00%) as potential winners, especially in light of Cigna's purchase of Humana's (HUM +3.28%) Medicare Advantage plans earlier this year. Creating relationships with near-retirees should make it easier for them to attract business for their Medicare Advantage and supplemental insurance once those older adults are eligible for Medicare.
