I found a great article that shows what companies would benefit from the Public Option. Granted, the article was written a while back, but the analysis is enough proof that the Public Option would make for some new interesting opportunities in the various business sectors that would be involved:
The healthcare reform is likely to provide health-care insurance coverage for some 46 million uninsured Americans (15% of the total population). The reform, in all probability, is likely to expand the revenue basket for providers of medical products and services, including pharmaceutical companies. In addition, this is likely to provide substantial opportunities for life insurers in the US. As a result, life insurance industry’s revenue pie is expected to go up from 46.6% of total insurance industry in 2007 to 48% by 2012.
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President Obama and congressional Democrats favor changing the program to allow or possibly require direct government negotiations with drug manufacturers, which is expected to sharply lower the program's cost. Another likely money-saving tactic will be greater use of inexpensive generics through new incentives.
These changes are likely to favorably impact companies such as
Abbott Laboratories and
Johnson&Johnson. These companies seem to be well-positioned in growing pharmaceutical, device, and consumer health-care markets. In the domestic pure play pharma segment,
Bristol-Myers and
Schering-Plough are likely to be benefited as compared to their peers.
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Competition from generic biotech drugs would put pressure on drug pricing, and lower returns that are necessary for firms to recoup investments and to support pharmaceutical and biotechnology innovation.
Genzyme and
Celgene could be the winners. Genzyme is likely to achieve its 20% annual earnings growth strategy and invest in new alliances for late-stage clinical assets, and see multiple new drug approvals/label expansions for existing products in 2009. Celgene has the best earnings growth prospects among large-cap industry leaders.
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Obama has also stated his support for genetics research and technology advancements, which could benefit companies such as
Illumina and
Affymetrix.
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The largest managed care organizations, such as
UnitedHealth Group (UNH) and
WellPoint (WLP), have the size and economies of scale to help control medical costs and, therefore, profit more from such a program.
Given Obama's support of e-prescribing, increased generic utilization, and an approval pathway for biogenerics, as well as increased health insurance enrollment, pharmacy benefit managers, including
Express Scripts (ESRX) and
Medco Health Solutions (MHS) and the large drug distributors, including
AmerisourceBergen (ABC),
Cardinal Health (CAH), and
McKesson (MCK), are poised to increase profitability.
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Companies that provide outsourced psychiatric facilities, such as
Psychiatric Solutions (PSYS), and outsourced surgery centers, such as
AmSurg (AMSG) could be the winners. In addition, long-term acute care hospital and nursing home providers that provide services at significantly lower costs than acute care facilities, such as
Kindred Healthcare and
Sun Healthcare Group are likely to be the winners.
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Hartford-based
Aetna had 366,000 Medicare members at the end of December.
UnitedHealth served nearly 1.5 million, and
Humana, 1.4 million. Even Aetna and UnitedHealth could gain in the long run through efficiency gains (IT implementation).
Full article:
http://www.istockanalyst.com/article/viewarticle/articleid/3082507Stock symbols: ABC, ABT, AET, AFFX, AMSG, BMY, CAH, CELG, DNA, ESRX, HUM, ILMN, JNJ, KND, MCK, PSYS, UNH, WLP
The reason I'm showing what essentially is a stock tip sheet analysis is to get the message out that the Public Option would not only be the correct thing to do, but if you are an investor or want to show these stock tips to a leery Republican, they might see that there are opportunities for the economy to get better DUE TO THE PUBLIC OPTION!