Morningstar Magazine - February/March 2014 - (Page 70)

Sector Rap Is the Affordable Care Act Healing Health Care's Woes? By Basili Alukos As the ultimate impact of Obamacare comes into focus, the sector's winners and losers are becoming more apparent. For the everyday Americans affected by the U.S. Affordable Care Act, the law has brought uncertainty because of delays, deferrals, and bumpy rollouts. For investors, however, the effects of Obamacare on the companies in the health-care sector are beginning to clear up. To get an update on how the law will have an impact on firms in the industry, I talked with Morningstar health-care analysts Damien Conover and Vishnu Lekraj. Our discussion 70 Morningstar February/March 2014 took place Dec. 16 and has been edited for clarity and length. Basili Alukos: I'd like to start by getting a broad understanding of health-care trends under the Affordable Care Act. The United States is the largest spender on health care in the world, but we often don't get much bang for our buck. Will the new law change that dynamic? Damien Conover: The United States spends a much higher percentage of its GDP on health care than do all other industrialized nations for arguably equal outcomes. The goal of the Affordable Care Act was to expand access to health care rather than trying to bring down costs. There are elements in the bill that try to get at bending the cost curve a little bit, but they don't have a lot of teeth and it really wasn't the key piece of the reform initiative.

Table of Contents for the Digital Edition of Morningstar Magazine - February/March 2014

Morningstar Magazine - February/March 2014
Letter From the Editor
Preparing for the Next 50 Years
Morningstar Managers of the Year
Fixing the Trust Deficit
Rethinking the Path to Retirement
Same Old, Same Old
Global Briefs
The Economic Implications of an Older World
Banking on Performance
Is the Affordable Care Act Healing Health Care’s Woes?70
Baxter Has a Positive Prognosis
Leading Fidelity’s Charge for RIAs
Our Favorite Mutual Funds
50 Most-Popular Equity ETFs
Undervalued Stocks With Wide Moats
Moving the Goal Post

Morningstar Magazine - February/March 2014