There is a split between what free-market policy analysts believe Obamacare will do to health insurers and what investors believe. Wonks tend to think that the regulatory burden imposed by Obamacare – especially increasing politicians’ power over health plans’ ability to set premiums – will demolish private health insurance.
But Wall Street sees it differently: The “individual mandate” that every American acquire health insurance has been understood as an overwhelming gift to the health insurers. Their premiums, although highly regulated, are about to become fairly risk-free. Perhaps they should be analyzed as utilities?
Read the entire column at Forbes.com.