The much ballyhooed healthcare legislation continues to meander its way through Washington, seemingly getting watered down at every turn. As the House and Senate versions are reconciled, investors are getting a better idea of what kind of changes to expect in the final package. We will try to steer clear of political arguments in this column, and focus more on investment implications.
Clearly there will be some changes throughout the industry, including coverage for many of those currently uninsured and no more insurance exclusions based on pre-existing conditions. However, it looks like the reforms in the final bill will be a far cry from the hard-hitting measures that many expected at the outset.
For investment purposes, we’ll continue to avoid those companies that could be negatively impacted (even if by only a small measure), while advocating what we see as surefire winners – specifically those companies that benefit from longer-term demographic trends.
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