Market Overview

Companies To Take Note Of As Obamacare Launches Next Week

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Health insurance marketplaces are scheduled to open for the entire nation at October 1. After the opening, there will be a six month period before the government will fine the uninsured.

While all states are expected to go live at the same date, some are having doubts on their ability to meet the deadline.

Joel Ario, a former HHS official, stated to the Washington Post that “nobody is going to say we’re not starting on October 1, but in some situations, you may see a redefinition of what ‘start’ means."

Despite the possible delays, the launch is expected to proceed on schedule. As the plan starts to kick in for over the next six months, there are some companies that would likely benefit from the reform.

With the increased number of health insurance and drug coverage, pharmacy chains such as CVS (NYSE: CVS), Walgreens (NYSE: WAG), and Rite Aid (NYSE: RAD) will get higher traffic of customers. In addition, CVS operates a small clinic called “MinuteClinic” across many of its locations, which will also see a rise in the number of customers.

Fitness clubs such as Life Time Fitness (NYSE: LTM) will also see rise in traffic due to Obamacare. The Obamacare allows companies to charge more for insurance policy towards the overweight and unhealthy employees. In addition, higher amount of trips to the doctors is expected to raise the public awareness of health problems. Obamacare even has provisions that will allow the reimbursement of the money spent on fitness clubs.

The ripple effect may also cause sports equipment producers such as Nike (NYSE: NKE) to benefit while food chains considered unhealthy such as McDonald's (NYSE: MCD) to face problems.

Posted-In: Affordable Care ActEducation Futures Politics Topics Markets Trading Ideas General Best of Benzinga

 

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