Health care service providers likely saw weak demand in the final quarter of 2012, but that may have limited impact on their shares. Investors are focused on longer-term gains from the national health care overhaul, according to a Jefferies analyst.
Pharmacy benefits managers, doctor groups, hospital operators and other businesses that provide health care stand to benefit when the overhaul expands starting next year, analyst Brian Tanquilut said in a Monday research note.
In 2014 the overhaul will begin offering income-based subsidies that help people buy health insurance, and it will expand the state and federally funded Medicaid program for poor and disabled people in some states. Reducing the number of uninsured individuals will increase reimbursement prospects for many health care companies.
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