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Gabelli Healthcare & Wellness Trust Portfolio Manager Jeff Jonas on the health-care stocks investors should consider for their portfolio.
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And a new study by Deloitte says that one in ten employers could drop health care coverage.
Because of the new healthcare law that could be real it could be a scare tactic but we've got a money manager who says the law actually could help.
The private sector if you're an investor joining us now is Jeff Jonas he's portfolio manager of the the belly health care and -- trust.
We hear a lot of people making a lot of noise about how this is socialized medicine it's gonna kill private industry that -- related to it what do you say.
I think it's actually gonna help the industry because we're spending another one point eight trillion dollars into the same system that we have today.
So I think that extra volume and that extra spending is -- more than offset some -- the taxes and regulation that are coming near the portfolio manager of -- the belly health care and wellness area and and there's a lot of money put into that.
Have you seen growth and specifically which -- is that the insurers is that the medical device guys the -- the industry's been bouncing back over the last two years when we started obamacare.
They definitely were under pressure.
But now they've held up well in a tough market and in defense of -- And most that companies are dealing well with the industry will be SMP health care sectors up what seven point 5%.
Year to date -- can't feed -- data at the moment so you're a believer.
Let's find out which names you believe in the -- -- -- number one pick.
Express Scripts they're now the largest pharmacy benefits manager in the country they are able to close on the Medco acquisition earlier this year.
That's gone extremely well they've been talking about getting the senate is -- -- expected may be getting more synergy is.
And I think everything points to a really good second quarter earnings result didn't they just three strike a deal with Walgreens they did and they basically one that dispute.
They've they're gonna move to -- restricted network that probably got some pricing concessions -- the no 10 really comment on on those details.
So I think they're coming out on top cop -- next one for -- Meyers yes.
They reported earnings this morning and the headline numbers look bad revenue was down 18% I think earnings about 14%.
We knew that they have two big patent expirations that they're facing.
Plavix and then a hypertension drug as well.
But they have the best pipeline in the industry.
The bring in new blood -- to market -- Creighton cancer and in skin cancer in particular and they've done a couple really Smart acquisitions what's your stay away from stock.
Well -- today hitting a new lows WellPoint.
And that's been an insurance company with a lot of issues that had underwriting issues in the past they're losing members.
And for the rest of this year they've done a couple -- -- acquisitions that are weighing on earnings so it's been a real challenge out they've got a lot of exposure to Medicaid in California.
Yeah and that budget situation there -- certainly hurting and they're getting squeezed on the rate.
And even on the commercial insurance is highly regulated in California -- -- -- rate increases approved by the government.
Becomes a political process and they don't always get what they know when when people say that we're going socialized medicine and that private companies are gonna go under your responses.
You just have to be a lot figure than before because there is going to be regulation there's going to be some taxes.
But still the ones who can really save money and really add value -- gonna thrive Jeff good to see if credit.
Yeah -- -- portfolio manager of that the belly health care and wellness stress went to Boston College -- -- compelling loves Boston College.
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