Will Health-Care Stocks Outperform Again in 2015?

The video discusses the outlook for 2015, focusing on sector performance and the impact of coverage expansion under the Affordable Care Act (ACA). It highlights the importance of sustainable margins in commercial, Medicare, and Medicaid businesses. The discussion also covers political uncertainties surrounding the ACA and potential risks to insurers. The video concludes with an assessment of Medicaid-related risks, noting that Medicaid names are currently underearning compared to historical levels.

What is a key factor investors should consider when evaluating the healthcare sector's performance in 2015?

• The number of doctors entering the field

• The number of new hospitals built

• Sustainable margins in commercial, Medicare, and Medicaid businesses

• The popularity of healthcare apps

What is a potential risk to insurers due to political uncertainties surrounding the ACA?

• Increased competition from international insurers

• Potential changes to the ACA affecting coverage and subsidies

• Changes in healthcare technology

• A decrease in the number of healthcare professionals

Why might states like Texas and Florida be hesitant to expand Medicaid eligibility?

• Because of political views in those states

• Lack of healthcare facilities

• Due to financial constraints

• Insufficient demand for Medicaid

Why are Medicaid-reliant companies considered to have less risk of changes?

• They have a larger customer base

• They have historically lower earnings compared to other insurance sectors

• They are less dependent on government policies

• They have higher profits than other sectors

What is a significant challenge for states in accepting workarounds for ACA changes?

• Shortage of healthcare professionals

• Insufficient funding

• Political acceptance of the workarounds

• Lack of technological infrastructure