How to Play the Affordable Care Act

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Oct. 1 (Bloomberg) -- Jefferies Healthcare Analyst David Windley,'s Jim Ramelli and Bloomberg's Shannon Pettypiece discuss the Affordable Care Act with Trish Regan on Bloomberg Television's "Street Smart." (Source: Bloomberg)

All of this, trying to assess the landscape.

What conclusions are you coming to?

Lacks we have been talking to a lot of people try to sign up for insurance.

We have been talking to state officials.

So far, demand on day one seems to be a lot more than anybody was expecting.

New york state said their website got two point 5 million visits in the first half hour.

2.5 million visits in the first half-hour.

All of that traffic has really shutdown these websites.

They were not equipped to handle them.

The question everybody is asking is how many of the people are going to come back and turn into real buyers?

How many are going to purchase plans and how many people are going to be young and healthy?

One of the questions i would have is if you see so many people showing so much interest in these plans, i would guess there are people that probably want and need health care.

They may not be the 20 tweet- year-olds -- 22-year-old in great help.

What is your thought?

I talked to one woman today.

See it in her 60s. she's not sick but she just lost her health insurance in january.

She is just anxious and worried.

She will not be spending a lot of money on health care right away.

It has increased a lot of anxiety for her.

You are right.

There will be a flood of older people and that the young, healthy people are really going to be trickling in closer to the december 15 deadline.

How does this affect the companies and their bottom line?

You make it more people in but if they are not the people that are really going to help your business, if they are the people who are more of a liability, does it hurt these companies?

The more people that we see come to these exchanges, a high level of hits on these website is encouraging relative to risk pool.

The more people that sign up, the more likely we are to see a more balanced risk pool.

The other factor is if it is slow and these people do not come back, the existing pools of risk coverage at these managed care companies are likely to stick.

If people cannot get insurance through the exchange they're going to get the old way.

That is better.

We're going to leave it as far as an investing strategy.

The fact -- what i want to look at is

They operate the exchanges.

They are doing this for 36 out of the 50 united states.

It seems like they're having some problems with that.

There may be some opportunity to grab up the other 14 states.

I think there is a good chance that they had this higher.

It performed really well this year, getting a really nice a bit.

I want to look at the fed in the money store, risking $500 for potentially unlimited reward.

Is about $200 higher.

I wonder as the penalties go up for not having insurance, whether the companies will benefit because you will be bringing in a greater number of people, healthy young people.

If that does happen, every health-care company will benefit.

If there is a large number of people who set up, even the insurance, they all gains because they have more people who were going to the doctor or taking prescription drugs are getting surgeries done.

There is potential for a lot of companies to benefit depending on what happens.

Do you see this as a win?

I think so.

We are expanding the pool of customers.

I would argue that if we get the healthy people to sign up as well, the insurers will be the one that benefit the most.

That is a big if.

If you only get a fine of 100 bucks a year for not signing up, maybe that is the price of doing business because it would have cost you a lot more if you signed up.

The fine is likely to be 1% of income.

We think these companies will see an increasing number of people over time.

The issue you brought up of people coming to the website.

We will be watching all of it.

Coming up we're going to have

This text has been automatically generated. It may not be 100% accurate.


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