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Jefferies managed-care health-care analyst David Windley on where to invest now that the health-care law has been upheld.
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Billion dollars on a lot of money.
All right as we mentioned dad then 175 points right NASA -- in play this hospital stocks though they jumped after the Supreme Court upheld president Obama's healthcare law.
Our next guest though says it may be a short lived rally joining us now David -- -- -- managed care health care analysts are look.
Whether you agree or disagree at some point you -- make money off of this right so -- -- -- first place you're gonna go today to do just that.
Well the first place people are definitely going is the providers and the Medicaid managed care stocks those are the the players that benefit from the expanded coverage.
That comes along with Medicaid expansion for now with the law -- we know that's going to come so first places there.
We think there's an opportunity to go a second place to the diversified managed care companies.
So you think I've read that providers are gonna take a bigger hit on this and the payers explained we specifically what you mean by that -- -- -- identify in those categories.
Sure are so does so by that we really mean looking so now that the law.
Is decided by the Supreme Court what's next and next for the providers my colleagues and I believe.
Are a number of reimbursement headwinds be those budget deficit reduction actions by congress.
Doc fix issues things of that sort and maybe even some more pressure from the diversified managed care companies on.
The rate increases that providers have become accustomed to getting.
So as we rotate our gaze forward to those issues.
We think that those provide -- or create headwinds for the providers face conversely.
Utilization remains slow we think two Q earnings expectations are more muted as we head into that earnings season for the managed care providers.
And therefore would see those stocks react more -- as we move in the second half of the year.
When you -- providers like we presume he took about united health care Humana.
And I think Amerigroup was on your list as well.
Let let me ask you this quickly though or you know already -- Republicans are coming counting -- going to repeal this or at least they're gonna make an attempt to -- does that.
Maybe keep me out of the entire sector and just say hey let's just stay -- from this there's other efficiency.
Certainly that the the threats to repeal Obama care do.
Leave a looming cloud of uncertainty out there are for 4013.
I'd suggest that it is.
You know it is political rhetoric gets to be expected immediately after this decision.
But I think a lot of reform.
Drivers are already in place and are taking over in the commercial market.
As and not just the Medicare market so some of these reform.
Aspects are going to continue whether the law stays in place or not and at a minimum we got a lot -- January next -- him as a make some money didn't -- me from Jefferies thanks for your thoughts.
