The Dangerous Impact of Defunding Obamacare

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This episode of The Motley Fool's Market Checkup drills down on the day's hottest headlines and plays a game of investing chicken with the world's biggest biotech. Market Checkup gives a full examination of the recent regulatory action around potential new generic threat to a big-time blockbuster drug and looks at a study questioning the benefits of robotic surgery.

In this video, health-care analysts David Williamson and Max Macaluso discuss the potential fallout if Congress successfully defunds the Affordable Care Act. It may come as a surprise that this potentially dangerous plan won't stop the law's implementation or help out businesses facing Obamacare's higher taxes.

What removing funding will do is negatively affect insurance companies such as Aetna and WellPoint that are counting on Medicaid expansion, subsidies, and the start of the state-based insurance exchanges. Regardless of whether Obamacare is funded, insurers will no longer be able to discriminate for pre-existing conditions, but if their access to a large, healthy pool of applicants is cut off, it could spell trouble. 

However, insurers aren't the only stocks at risk. Watch and find out how your portfolio could be affected by what happens in Washington.

Still in the dark about how Obamacare might affect you and your portfolio? Don't worry -- you're not alone. To help prepare investors for the massive changes coming to the American health-care system, The Motley Fool created a special free report that makes this complex topic easily understandable. Download "Everything You Need to Know About Obamacare" and discover how the law may impact your taxes, health insurance, and investments. Click here for your free copy today.

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David Williamson has no position in any stocks mentioned. Follow David on Twitter: @MotleyDavidMax Macaluso, Ph.D., has no position in any stocks mentioned. The Motley Fool recommends and owns shares of WellPoint. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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