These 5 Stocks Are Loving Obamacare
The implementation of the Affordable Care Act has created a political firestorm in Washington. The fiscal standoff is over, the United States will not default on its public debt, and the federal government will have the funds to continuing operating thanks to legislation passed by both the Senate and the House of Representatives that will authorize current spending levels through January 15, thus extending the debt cushion until February 7.
But hearings regarding the implementation of the health care reform law’s cornerstone provision, the online marketplaces, have only just begun. Yet despite concerns that the technical problems plaguing the insurance exchanges will translate to enrollment problems, shareholders of the five biggest publicly traded insurance companies — Aetna (NYSE:AET), WellPoint (NYSE:WLP), UnitedHealth Group (NYSE:UNH), Humana (NYSE:HUM), and Cigna (NYSE:CI) — have not been spooked.
Over the past year, shares of Aetna, WellPoint, UnitedHealth Group, Humana and Cigna have advanced by an average of 32 percent. For comparison, the S&P 500 Index has risen 24 percent.