Tenet Healthcare Corp (THC), Community Health Systems (CYH), Health Management Associates Inc (HMA): The Real Crisis in Employer-Provided Health Insurance

Why the uninsured are so important
One big question that Obamacare proponents and opponents are wrestling with right now is the extent to which these uninsured workers will get coverage under new health care laws. On one hand, the individual mandate requires most people to obtain coverage. Yet if cost truly is the problem, Obamacare provides an exception to the mandate that exempts those for whom the cost of care is prohibitive.

That in turn could create a problem for hospital companies. Tenet Healthcare Corp (NYSE:THC), Community Health Systems (NYSE:CYH), and Health Management Associates Inc (NYSE:HMA) have all seen their share prices jump sharply as investors grow increasingly excited about the prospects of uninsured Americans getting mandated coverage under Obamacare. The hope is that by having more people insured, these hospital companies will lose less in uncovered health care expenses they incur when they treat uninsured patients.

As a result, much will depend on government subsidies to help low-income workers bridge the gap between available coverage and affordable coverage. If subsidies don’t succeed, then the real crisis in employer-provided health insurance could well continue — and hospital stocks could give back much of their gains.

The article The Real Crisis in Employer-Provided Health Insurance originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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