isn't going according to plan.
The President delayed a key component of the Patient
Protection and Affordable Care Act yesterday. Employers will not
be required to provide health insurance for its employers until
2015 - a year later than originally planned. That hasn't been
good news for some healthcare stocks.
Shares of health insurance companies and hospitals have tanked
since the news broke. Healthcare stocks with a market cap of $1
billion or above that declined at least 2% today included the
Health Management Associates (
Tenet Healthcare Corp. (
HCA Holdings (
Universal Health Services (
Select Medical Holdings (
Community Health Systems (CYH)
One smaller healthcare company,
USMD Holdings (USMD)
, had a 15% dropoff today. It was all part of a mass sell-off in
healthcare insurers and hospitals, both of which stand to making
less than they initially thought now that Obamacare is delaying
insurance requirements another year.
Whether or not this is a one-day - or actually a half-day -
sell-off or the start of a longer trend remains to be seen. If
healthcare stocks get beaten up too badly in the coming days as a
result of yesterday's news, that could convince some investors to
buy the stocks on the cheap.
Furthermore, long-term investors in the healthcare space
aren't likely to abandon ship just because a health insurance
requirement is being delayed one more year. Considering the
requirement has never existed, one more year seems like small
That said, the latest Obamacare tweak is sure to reverberate
for some time … which could make the next few weeks rough for