UnitedHealth Group Inc. (UNH), Aetna Inc. (AET), Health Management Associates Inc (HMA): Obamacare Heads for the Hills….of Arkansas

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14 states have pushed back on expanding Medicaid. Several, notably Texas and Louisiana, could closely watch how things unfold in Arkansas. The private purchase option and potential exit path that were key to passage in Arkansas could appeal to conservatives in these states who have been reluctant to act thus far.

If the “Arkansas plan” moves past the Ozark mountains to other states, particularly large states like Texas, some of the companies mentioned above could see larger gains. For example, Community Health runs hospitals in nine of the 14 states currently opting against Medicaid expansion. Health Management Associates (NYSE:HMA) owns hospitals in eight of those states.

Aetna Inc. (NYSE:AET) and UnitedHealth Group Inc. (NYSE:UNH) also could benefit, but only if they participate in the health insurance exchanges in any affected states. Aetna Inc. (NYSE:AET) indicated that it would likely participate in 15 health care exchanges initially, but says that these exchanges will probably contribute to the company’s growth.

UnitedHealth Group Inc. (NYSE:UNH) seems to be moving somewhat cautiously. The company announced that it would initially participate in at least 10 of the marketplaces and perhaps up to 25. UnitedHealth Group Inc. (NYSE:UNH) CEO Stephen Hemsley said that “the level of interest in exchanges will be driven by how we assess each local market.”

Obamacare heading for the hills of Arkansas might not be a huge deal. But if the Arkansas approach catches on, this week’s action by the Arkansas legislature could set into motion the political equivalent of moving mountains. And some stocks might enjoy loftier heights as well.

The article Obamacare Heads for the Hills — of Arkansas originally appeared on Fool.com and is written by Keith Speights.

Fool contributor Keith Speights has no position in any stocks mentioned. The Motley Fool recommends UnitedHealth Group.

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