UnitedHealth Group Inc. (UNH): Could Obamacare Impact Its Earnings?

Obamacare on the horizon
Implementation of the Patient Protection and Affordable Care Act, commonly referred to as Obamacare, next year could add even more headaches for the company: While the legislation will force tens of millions of Americans to find insurance, UnitedHealth Group Inc. (NYSE:UNH) could see its costs from these newly insured members rise significantly if hospital and doctor prices continue surging. A health insurance premium tax, also part of the Affordable Care Act meant to help pay for the legislation, won’t help matters across the industry.

While investors may be fretting today about the company’s earnings, savvy shareholders should keep their eyes firmly on health care reform. UnitedHealth’s still managing to grow its membership rolls at a steady pace and boost revenue, but Obamacare’s massive reform will shake up the company and the insurance industry in a way previously unseen. No company is as better poised to handle the Affordable Care Act as UnitedHealth Group Inc. (NYSE:UNH) due to its size and position atop the insurance industry, but don’t expect the firm to walk away unchanged by reform.

The article Could Obamacare Impact UnitedHealth’s Earnings? originally appeared on Fool.com and is written by Dan Carroll.

Fool contributor Dan Carroll has no position in any stocks mentioned. The Motley Fool recommends UnitedHealth Group.

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