Following in the
Senate's footsteps, leaders in the House of
Representatives revealed late last week their plan for what
the bill debated on the floor will look like. Like any major
piece of legislation, there are things that people will both
love and hate. Let's dive right in and see who could be
the big winners and losers.
The bill fails to stop cuts to Medicare
doctors.
The government-sponsored public plan is alive and
well.
UnitedHealth Group (NYSE: UNH) and
Aetna will face additional competition, but
it might not be that bad. The Congressional Budget office
estimates that the public plan would have premiums that
were slightly higher than those of private insurers.
A pathway to generic biologic drugs includes 12
years of exclusivity.
Biogen Idec and
Amgen (Nasdaq: AMGN), as well as
pharmaceutical companies with biologics, such as
Eli Lilly 's and
Bristol-Myers Squibb 's Erbitux, will enjoy
a longer exclusivity than the five years afforded to
small-molecule drugs.
Losers: Generic drugmakers like
Teva Pharmaceuticals (Nasdaq: TEVA),
hybrids like
Novartis (NYSE: NVS), and even
pharmaceutical companies like
Merck (NYSE: MRK) have planned to enter the
market once Congress gives the Food and Drug Administration
direction on how to approve the knockoffs. Unfortunately,
they'll have to wait a little longer before getting their
shot at some of the blockbusters.
The bill contains a 2.5% tax on medical
devices.
Boston Scientific (NYSE: BSX) and
Medtronic (NYSE: MDT), but possibly the
public, if those taxes are also passed along to the end
consumer.
Keep in mind that there's still a long way to go. The
final bill still needs to be passed by the full House, and
then reconciled with the Senate bill, which will likely
contain some different provisions. That last step could lead
to a
health-care stalemate.
What's your favorite or least favorite provision? How
do you think this will affect your investments? Sound off
in our comments section below.
This article was originally published as
Winners and Losers of the House Health-Care Reform Billon
Fool.com
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