Profit or Loss from Obamacare: Insurers and You – Aetna Inc. (AET), Cigna Corporation (CI)

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WellPoint, Inc. (NYSE:WLP)

WellPoint is another monster in the sector, with the 2008 numbers coming in at $55 billion in premiums. Still, the firm has its ups and downs, with a recent downgrade from buy to neutral on its record. The firm has been busy absorbing some acquisitions over the last few years and that always has the ability to provide for some instability.

Shares in WellPoint have grown a solid 100% since early 2009 but in this field that looks positively anemic! Even with the highest dividend among the firms I’m examining – it’s 1.83% – I can’t recommend WellPoint right now. It’s not that it’s not a good company, it’s just that there are better places to put investments aimed at the health insurance industry.

Anyway, that’s my thoughts. The biggest takeaway from the Obamacare debate wasn’t “death panels” or people protesting or yammering talking-heads claiming it was the end of the world. The real data investors should have noticed is the sheer number of new customers that insurers were about to pick up through the requirement for all to have some form of insurance. Don’t let politics cloud your investment judgment. Health insurance has the potential to be a wild and profitable ride over the next decade. You should be prepared for it.

Good luck!

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The article Profit or Loss from Obamacare: Insurers and You originally appeared on Fool.com and is written by Nate Wooley.

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