Will Obamacare Sink Tomorrow’s UnitedHealth Group Inc. (UNH) Earnings?

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But UnitedHealth has some lucrative business opportunities beyond simple health insurance. Its Optum subsidiary stands to be instrumental in managing health-benefits data, helping businesses manage health care information and coordinate it with the benefits they offer to ensure smooth operation of their health programs. With all the changes Obamacare will bring, investors can expect Optum’s services to become increasingly important not only for UnitedHealth but for businesses across the country seeking to comply with the law.

More interesting is UnitedHealth’s recent investment in Brazilian insurer Amil. By looking abroad, UnitedHealth is taking the opportunity to diversify its political exposure, leaving itself with an out even if Obamacare proves to be disastrous to its business model. With UnitedHealth having begun a tender offer in March to take over the 30% of Amil’s shares that public investors own, the company should be in a position to start broadening its international empire and become a worldwide health-insurance leader in the long run.

In UnitedHealth Group Inc. (NYSE:UNH)’s earnings report, watch closely for further updates on the company’s revenue expectations for the year. Last quarter, UnitedHealth cut its projections by $1 billion to $2 billion, sending shares down sharply. If the insurer has to report another cut in guidance, then UnitedHealth’s recent stock gains could evaporate quickly.

The article Will Obamacare Sink Tomorrow’s UnitedHealth Earnings? originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends UnitedHealth Group and WellPoint. The Motley Fool owns shares of WellPoint.

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