CVS Caremark Corporation (CVS), Walgreen Company (WAG): 2 Companies Ride to the Rescue of Obamacare Exchanges

Those in charge of getting the exchanges up and running undoubtedly felt the pressure of the ticking clock. That Oct. 1 deadline was only 62 days away when news of the eHealth contract broke. The GAO report from June painted a picture of a fiasco in the making. Even though the Department of Health and Human Services, or HHS, “expressed its confidence” that the exchanges would be running by the deadline, few others appeared to have any confidence.

The bottom line
There’s no doubt that the Obamacare deal is great news for eHealth, Inc. (NASDAQ:EHTH). Its shares jumped 29% following the announcement. This is a company with 2012 revenue and earnings well below levels from two years ago. Riding to the rescue of Obamacare amounts to a joyride for eHealth.

CVS Caremark Corporation (NYSE:CVS) certainly didn’t get that kind of bounce from its promotional efforts for Obamacare. However, assuming that lots of previously uninsured Americans sign up for insurance through the exchanges, CVS — along with Walgreen Company (NYSE:WAG) and other pharmacies — should see higher revenue and profits as more prescriptions are filled.

The bottom line for the Obamacare exchanges, though, will depend on whether enough uninsured individuals actually use them. As Rodney Dangerfield knew from experience, respect doesn’t come easily.

The article 2 Companies Ride to the Rescue of Obamacare Exchanges 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 has no position in any of the stocks mentioned.

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