WellPoint, Inc. (WLP), AbbVie Inc (ABBV): Three Parts of Obamacare Everyone Should Love (Even If You Hate the Rest)

While there’s no silver bullet, at least one part of Obamacare should help Medicare save money: bundled payments.

Bundled payments involve reimbursing health-care providers for an entire episode of care. This method provides disincentives for providers to give unnecessary care and promotes coordination between different health-care providers.

Last year, the Congressional Budget Office evaluated 10 different projects that all were attempting to control Medicare costs. Only one project was successful — the one that used bundled payments. This project cut costs by 10%. Now more efforts are under way to further test the bundled payment concept.

Many hospitals are embracing the idea. Health Management Associates Inc (NYSE:HMA) counts six of its hospitals included in a national bundled-payment initiative that involves hundreds of providers. The large hospital chain touts this participation, with a representative stating, “We’re proud to take part in this important initiative and potentially help improve care for Medicare patients.”

Lost that loving feeling?
Not everyone will love these three components of Obamacare, of course. However, I think many of us have reason to do so. Protecting people from unfair insurance-company practices, promoting lower prescription drug costs, and holding down Medicare costs sound like good ideas, don’t they?

Even if you’re among the plurality of Americans who dislike Obamacare, these are a few things you probably can like and maybe love about it. Investors can potentially even profit from it. Enjoy the glow for a minute. It probably won’t take long before that loving feeling is gone, gone, gone.

The article 3 Parts of Obamacare Everyone Should Love (Even If You Hate the Rest) 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 and WellPoint and owns shares of WellPoint.

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