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Health insurance industry healthier than predicted
Marketplace

So far, the fiscal impact of President Obama’s health care reform is not nearly as bad as originally forecast by Wall Street types. Parts of the Affordable Care Act have already taken effect, like the rule requiring insurers spend a certain percentage of their profits on medical costs — some analysts had predicted that requirement would hurt the bottom line.

“Investors overestimate the impact of the law on managed care organizations,” says Matt Choffina, a senior equity analyst at Morningstar. “They seem to be feeling little, if any, impact from the health reform law.”

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