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
Contents
Contributors
Letter From the Editor
Preparing for the Next 50 Years
Morningstar Managers of the Year
Fixing the Trust Deficit
Rethinking the Path to Retirement
Trends
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
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