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There's an excellent article in the Washington Post Business section today about the impact of Obamacare on health care sector stocks and investments -- the impact is positive.

In his "(Investing) Advice for Ted Cruz," author Barry Ritholtz lays out facts that the Republicans don't want us to know.

Advice for Ted Cruz

Regardless of Cruz’s fiery oratory or partisan affiliation, after a long day of standing on his feet (21 hours!), when he sits down to review his portfolio, he should put his politics aside for the sake of objectivity. If you want to be smart investors you should consider all aspects of how the insurance mandate of law will affect different sectors of the economy (including the companies within those sectors). This is simply an objective approach.

When the health-care law was passed, my team did just that: We sat down to discuss exactly what impact it might have. Not the politics or the electoral implications, but what result this was likely to have in the real world. We came to several conclusions:

●The nation was going to create up to 50 million new health-care consumers;

●Demand for medical services and equipment was likely to rise;

●Innovative pharmaceuticals, procedures and techniques would also see increased demand;

●Hospitals would no longer be on the hook for free emergency room services, as they have for almost 3 decades.

More good stuff below the squiggle.

His last comment about hospitals no longer paying for "free emergency room services" is further explained:

What’s that you say? Hospitals are mandated to give away free services?

Yes. In response to some earlier bad behavior from hospitals called “patient dumping,” a mandate for unfunded medical care was created and signed into law by President Ronald Reagan in 1986. It said, “Hospitals provide care to anyone needing emergency healthcare treatment regardless of citizenship, legal status or ability to pay.”

That’s right, Reagan created a universal coverage mandate, forced the private sector to pay for it, thereby creating the world’s most expensive, least efficient health-care program. Hospitals hated it, the poor and indigent took advantage of it, and prices were jacked up in response to it. Eventually, the costs spread to everyone else.

Given that history, it is no surprise that hospitals were quietly pleased with Obamacare. After the Supreme Court ruled on the legality of the new rules in June 2012, hospital stocks rallied. It should come as no surprise: They get to remove a huge cost that they had no ability to control. They also get a massive number of new paying customers. And they now have some control over who their patients will be.

One wonders how these serious factors are swept aside in the noise about glitches in Obamacare websites.  I guess the facts are too boring
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Comment Preferences

  •  Do Capitalists thinks it's ok to (2+ / 0-)
    Recommended by:
    Gooserock, Sylv

    make a profit off of socialism?  How does that work, exactly? /snark

    I'd rather have a bottle in front of me than a frontal lobotomy.

    by beemerr90s on Sun Oct 06, 2013 at 05:20:23 PM PDT

  •  ER care is not free (0+ / 0-)

    It costs us all more than people realize. It is the most expensive and inefficient way to provide healthcare. The hospitals pass as much of the cost on as they can. There is no such thing as a free lunch. I got a letter yesterday from our local public hospital Carolinas Health care. They outlined the insurance policy that is now offered under the ACA encouraging people to sign up. They want to get paid just like everyone else. You would think that is the one thing the Repubs would understand even if they could give less than a shit about poor folks.

    •  Most people don't know what goes on in the ER (1+ / 0-)
      Recommended by:
      Bush Bites

      Most people simply do not realize what the ER is all about.  Or, to be exact, they don't realize the COST associated with the ER.

      Because of Reagan, hospitals must accept anyone who walks into the ER, regardless of the patient's ability to pay.  For those who can't pay . . . and that's a LOT of them . . . the hospitals have no recourse but to (1) write off the expense, and, (2) charge the rest of us more to cover the write-off.

      You are absolutely right . . . even though the GOP doesn't give a rat's ass about poor people, you'd think they would be concerned about hospital profits.  I guess their hatred of Obama overrides everything else.

      •  Slightly overstated (0+ / 0-)

        The ER is legally required to treat anyone who is actually dying or in active childbirth, without regard to ability to pay. Not just anyone.

        In practice they do treat just about everyone, for two reasons. One, doctors got into their profession to help people, not deny  them care. Two, no one wants the liability of turning away a patient who doesn't look like they're dying, but who then does.

        So the effect is about the same.

  •  Repubs Will Repeal Both the Solution and the (0+ / 0-)

    problem of the treatment mandate.

    So they do solve the institutional cost problem.

    We are called to speak for the weak, for the voiceless, for victims of our nation and for those it calls enemy.... --ML King "Beyond Vietnam"

    by Gooserock on Sun Oct 06, 2013 at 05:43:23 PM PDT

  •  I didn't realize Reagan instituted that. (0+ / 0-)

    I knew it was a huge problem for the hospitals, but didn't know how it started.

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