On the other hand, some businesses stand to win when it comes to Medicaid no matter what happens. Florida approved a transition of Medicaid to a managed-care system two years ago. The state obtained federal approval for this shift for long-term-care patients but still awaits a decision on the broader Medicaid population. However, a positive decision is ultimately expected.
Florida already announced contracts with seven managed-care organizations, including UnitedHealth Group Inc. (NYSE:UNH) and Amerigroup, which was acquired in 2012 by WellPoint, Inc. (NYSE:WLP). Medicaid managed care is a big business for both large insurers. UnitedHealth Group Inc. (NYSE:UNH) reported $16.4 billion in 2012 revenue from its business unit that handles Medicaid programs. WellPoint, Inc. (NYSE:WLP) doesn’t break out its Medicaid revenue separately, but Amerigroup reported more than $6.4 billion in revenue during the first three quarters of 2012, of which a high percentage stemmed from Medicaid.
Whether or not the Obamacare Medicaid expansion happens over time in Florida, these companies should win as the state shifts the program to managed care. Of course, they could profit even more if more Floridians are covered.
In the meantime, expect plenty of behind-the-scenes lobbying by interested parties in the state between now and the beginning of the next legislative session. The weather forecast is cloudy for Obamacare Medicaid expansion now, but sunshine remains a distinct possibility.
The article No Sunny Skies for Obamacare Medicaid Expansion in Florida originally appeared on Fool.com and is written by Keith Speights.
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