What Bipartisan Health-Care Reform Means for Investors

What Bipartisan Health-Care Reform Means for Investors.

Half a fix may be worse than no fix at all
There are two major problems with the U.S. health care system today: It’s very expensive, and there are many people who don’t have insurance. The two are ultimately tied together, both financially — I would imagine many of the 26.9% of Texans who don’t have insurance would buy it if it was cheap enough — and politically.

The solution is to get everyone into the risk pool, where the uninsured well people can help pay for the uninsured sick people. With universal health care off the table, that leaves politicians requiring everyone to get insurance through private insurers such as UnitedHealth Group (NYSE: UNH), WellPoint (NYSE: WLP), and Aetna (NYSE: AET). Without mandated health insurance, insurers can’t afford to insure people with preexisting conditions.

But the government would have to subsidize insurance for many poor people, which means extracting concessions from other areas of health care: drugmakers like Pfizer (NYSE: PFE) and Merck (NYSE: MRK), medical-device makers like Boston Scientific (NYSE: BSX) and Medtronic (NYSE: MDT), and even doctors who cover Medicare patients. Unless we’d like to bloat the deficit even more, we need those concessions.

Michael Arrigo

Michael is Managing Partner & CEO of No World Borders, a leading healthcare management and IT consulting firm. He serves as an expert witness in Federal and State Court and was recently ruled as an expert by a 9th Circuit Federal Judge. He serves as a patent expert witness on intellectual property disputes, both as a Technical Expert and a Damages expert. He leads a team that provides Cybersecurity best practices for healthcare clients, ICD-10 Consulting, Meaningful Use of Electronic Health Records. He advises legal teams as an expert witness in HIPAA Privacy and Security, medical coding and billing and usual and customary cost of care, the Affordable Care Act and benefits enrollment, white collar crime, False Claims Act, Anti-Kickback, Stark Law, Insurance Fraud, payor-provider disputes, and consults to venture capital and private equity firms on mHealth, Cloud Computing in Healthcare, and Software as a Service. He advises self-insured employers on cost of care and regulations. Arrigo was recently retained by the U.S. Department of Justice (DOJ) regarding a significant false claims act investigation. He has provided opinions on over $1 billion in health care claims and due diligence on over $8 billion in healthcare mergers and acquisitions. Education: UC Irvine - Economics and Computer Science, University of Southern California - Business, studies at Stanford Medical School - Biomedical Informatics, studies at Harvard Medical School - Bioethics. Trained in over 10 medical specialties in medical billing and coding. Trained by U.S. Patent and Trademark Office (USPTO) and PTAB Judges on patent statutes, rules and case law (as a non-attorney to better advise clients on Technical and Damages aspects of patent construction and claims). Mr. Arrigo has been quoted in the Wall Street Journal, New York Times, and National Public Radio.

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