How Companies Are Cashing in on Obamacare

Friday, 29 Mar 2013 09:09 AM

By Michael Kling

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Although its critics say Obamacare will increase business costs, some companies are cashing in on the healthcare reform law.

Many are working with insurance companies and hospitals rushing to meet the law’s deadlines. Many are start-ups. Many hope for high growth.

CNNMoney reviewed six companies that might reap huge benefits from Obamacare.

Editor's Note:
Use This Single Loophole to Pay Zero Taxes in 2013

Take, for instance, Health Recovery Solutions, a New York City-based start-up that helps hospitals avoid Medicare penalties for readmitting patients. To decrease preventable return visits by Medicare patients, Obamacare levies high cuts to Medicare reimbursements to hospitals that have a certain percentage of these return visits.

Health Recovery Solutions furnishes tablets full of educational videos and information patients can use to care for themselves. Using the tablet, patients send information, such as medications they are taking, to the hospital care team for review.

Eligible, another start-up, takes care of the complex wiring insurers need to quickly answer customer questions about coverage and eligibility, one of the many Obamacare requirements.

GoHealth offers an online tool that enables people to compare health care insurance plans. Consumers can use the platform to enroll in plans or just compare plans before contacting an insurance broker.

QuantiaMD offers a website where doctors can offer presentations, hold private discussions with each other and hold virtual consultations. Pharmaceutical and insurance companies and hospitals sponsor the content on the site.

Obamacare limits the proportion of premium revenue insurers can spend on salaries, overhead and marketing. That’s where Connecture comes in. The Brookfield, Wisc., company provides software that helps insurance companies cut costs through automation. It also helps states with technology needed to create insurance exchanges, another Obamacare requirement.

Another company getting involved with the state exchanges is hCentive, which has built a platform the exchanges can use.

Many of the companies saw their sales jump after the elections. Healthcare companies were not sure Obamacare would be enacted, and state officials were not sure they would still be required to create exchanges by this October. Now they know and they’re are scrambling to meet the law’s deadlines.

“Many states were waiting to decide to set up their own exchanges — they kept thinking maybe this wouldn’t happen,” Sanjay Singh, an hCentive partner, told CNNMoney.

Some companies benefiting from Obamacare are like entrepreneurs selling shovels instead of mining gold, according to a Motley Fool healthcare investing commentator Keith Speights. For instance, CGI Group, a Canadian technology firm, is well-positioned to help with insurance exchanges.

Other beneficiaries, he adds, may include UnitedHealth Group, which sells insurance and is helping build the federal exchange, and Express Scripts, the largest pharmacy benefits manager.

Editor's Note: Use This Single Loophole to Pay Zero Taxes in 2013

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