UNH (UNITED HEALTHCARE)
- P/E: 23.2
- GAAP DILUTED EPS GROWTH Q4 '15 TO Q4 '16: $.71
- SECTOR: HEALTH SERVICES
- ASSETS-LIABILITIES: 2.54
- DIVIDEND: 1.52%
In 2015, UNH was the largest provider
of health insurance in the United States of America. Unless the
United States develops a national health insurance plan like many
other nations of the world, health insurance will continue to be a
booming business. People can not do without health insurance, or
they will be forced to pay astronomical out-of-pocket costs. United
Healthcare has shown itself to be the strongest company in the
sector.
The healthcare industry is set to
change under President Trump. Healthcare will no longer be
mandatory. Medicaid expansion, although opposed by the new
leadership, will remain in place until 2020 due to laws already
passed by the previous administration. People without healthcare
through employment will be offered tax credits based on income and
other factors in order to obtain health insurance. Health insurance
companies will now be allowed to set their own prices.
UNH has cut their recent costs with
respect to providing services. Therefore, the new ability to
increase prices will allow them to set their prices at a competitive
rate, and collect income through their already massive consumer base
and large profit margin. From Q4 '15 to Q4 '16, the company saw just
a 9% revenue growth, with an astounding 56% growth in net earnings.
This impressive feat will serve them well in Trump's healthcare
scheme. Right or wrong, the new healthcare policy will have a
positive effect on UNH.
SOURCES:
http://www.telegraph.co.uk/news/2017/03/08/difference-obamacare-trumpcare-happens-next/
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