The Good and Bad of Obamacare | Summary and Q&A

TL;DR

UPS is removing health insurance coverage for 15,000 spouses of White Collar employees, blaming increased costs of Obamacare.

Key Insights

• 🙈 UPS cutting spousal health coverage is seen as a response to the increased costs of Obamacare.
• 💦 There are concerns about employers dropping employees or limiting their hours due to the implementation of Obamacare.
• 😷 Healthcare companies are finding ways to expand their businesses under Obamacare, such as pharmacies offering more medical services.
• 😷 Medical device companies face challenges and pricing pressure under Obamacare.
• 🚨 The healthcare industry is experiencing market disruption and winners and losers are emerging.

Transcript

hi fools Healthcare analyst David Williamson and we've seen a variety of responses from businesses as they deal with the impending implementation of Obamacare in 2014 now the big Obamacare story of the week is that UPS is taking away healthc care from 15,000 individuals now these aren't employees these are the spouses of White Collar employees and ... Read More

Questions & Answers

Q: Why is UPS removing health insurance coverage for spouses of employees?

UPS claims that the increased cost of Obamacare is the reason for dropping coverage, but some believe it is a convenient way to shift expenses onto other employers.

Q: Are there concerns about employers dropping employees due to Obamacare?

While it is a concern, the large employer mandate has been delayed until 2015, so the immediate impact may be limited.

Q: How are healthcare companies using Obamacare to expand their businesses?

Companies like Walgreens are expanding into pseudo-doctor roles and treating uninsured patients who may not have access to a regular general practitioner.

Q: How is Obamacare affecting medical device companies?

Medical device companies face challenges with the move away from a fee-for-service model and the 2.3% excise tax on revenue, causing pricing pressures and making them look for other investment opportunities.

Summary & Key Takeaways

• UPS is cutting healthcare coverage for spouses who already have insurance through another job, citing the rising costs of Obamacare.

• This move is seen by some as shifting a hefty expense onto other employers.

• Despite concerns about employers dropping employees or limiting their hours, the large employer mandate has been delayed until 2015.