Without Obamacare Reform, What’s Next For Health Insurers?

I chatted with CNBC on the prospects for health insurance stocks now that Obamacare reform is off the table. The market seems to be pricing in a rosy scenario in which health insurers can continue to pass on rising costs indefinitely. I’m not so sure. At some price — and for many Americans, that point has already passed — health insurance makes no economic sense. You’re better off taking your chances and going uninsured.

And while President Trump is currently saying he’s comfortable sitting back and allowing Obamacare to fail on its own, I’m not so sure about that either. Trump lacks the patience for that. I think it’s far more likely he intervenes, possibly with price controls. Clearly, nothing like that is priced into current stock prices.

Disclaimer: This material is provided for informational purposes only, as of the date hereof, and is subject to change without notice. This material may not be suitable for all investors and is not intended to be an offer, or the solicitation of any offer, to buy or sell any securities nor is it intended to be investment advice. You should speak to a financial advisor before attempting to implement any of the strategies discussed in this material. There is risk in any investment in traded securities, and all investment strategies discussed in this material have the possibility of loss. Past performance is no guarantee of future results. The author of the material or a related party will often have an interest in the securities discussed. Please see Full Disclaimer for a full disclaimer.