Obamacare Silver: Smart Choice or a Sign of Failure?

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The Patient Protection and Affordable Care Act, better known as Obamacare, has continued to remain controversial. With the latest state figures, some analysts have noticed that Obamacare silver plans have been very popular. The question, though, is whether that's a good sign or a bad sign for Obamacare's success or failure.

In the following video, Dan Caplinger, The Motley Fool's director of investment planning, looks at data from six states that points to more than half of all those signing up choosing silver plans. Dan notes that on one hand, silver-plan adoption suggests that people want more health-care coverage than bronze plans provide. Yet it also points to the fact that choosing a silver plan is necessary to be eligible for certain subsidies, such as cost-sharing of deductibles and copayments. Dan believes that young people signing up for silver plans simply points to their need for subsidized coverage, explaining how that fact should arguably be good news for insurers UnitedHealth Group and WellPoint as well as hospital companies Community Health and HCA Holdings .

When silver shines brighter than gold
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Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter: @DanCaplinger. The Motley Fool recommends UnitedHealth Group and WellPoint and owns shares of WellPoint. Try any of our Foolish newsletter services free for 30 days . We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Personal Finance , Stocks

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