This November, President Obama was elected for another four years. This means that the Affordable Health Care act he implemented will be on the fast track toward implementation within the next few years. Although there are people on both sides of the political world that both love and detest the plan, the overall effect on the pharmaceutical industry should be a positive one. In fact, there are many ways that the new medical rules will provide benefit to the pharmaceutical industry.
Greater revenue from preventative care
The preventative care industry will likely see an increase in business due to Obamacare. The plan allows coverage for preventative procedures unlike many current insurance plans. Insurers will be motivated to provide more preventative care, including screenings vaccines, and biotechnology processes because they are required to bring in 80 percent of their revenue from medical procedures rather than from insurance premium hikes. This will benefit pharmaceuticals because many preventative care options are drug or supplement-based.
Pharmacy stocks will rise
The medical industry is already strong, but the new government mandates on healthcare will cause pharmacy stocks to rise even higher. Since insurance and medical procedures are now a requirement from the government, any stock based in the medical industry will automatically go up. People who invest in the medical industry are likely to see a large income hike on their stocks from the new medical insurance plan.
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Increased pharmaceutical customers
Since insurers have to pay for their businesses with 80 percent medical-related products and procedures, more companies will want insurance customers to purchase the latest medical treatments and care options to cover their expenses. This will increase the amount of people using pharmaceutical products. That, of course, has certain problems attached to it. With the increase of people using drugs, abuse is a growing possibility; fortunately great places are set up to deal with such issues, click here for more information on that subject.
Since insurance is a requirement for most Americans, many people will want to increase the amount of medicine and procedures they have simply because they are paying for the treatment anyway. This will benefit the pharmaceutical industry as a whole simply by increasing the amount of people who purchase from the industry.
How hospitals benefit
The hospital industry will also benefit from the new plan. Right now, some individuals choose to skip insurance plans and simply pay for medical care as they go along. This reduces the amount of people who visit hospitals for smaller medical issues. With required insurance, more people will visit hospitals and take advantage of the medical services they provide.
The potential for pharmaceutical cost increases
The benefit to the medical companies and pharmaceutical industries is likely to be great. However, the benefit for individuals may not be so great. Individuals who already have insurance may see their prices increase by up to 20 percent. The Affordable Care Act prevents price increases above 20 percent, but it is possible that some insurance companies may find a way to continue to increase prices by 20 percent for the next several years, leading to extreme insurance costs for individuals who are unable to qualify for government assistance due to high income levels.
The future of the medical industry is unknown. It is likely that the medical industry as a whole will benefit from the new plan, but it is less certain which individuals will benefit from the plan. The only way to know for sure is to wait it out and see what happens. Most likely, if anything changes too much, the government will add additional stipulations to the act to ensure that the cost of health care is fair for all.