Obamacare, or the Affordable Care Act, is virtually upon us with open enrollment beginning on October 1 and the employer mandate taking effect on January 1. Like anything in life, there will be winners and losers as Obamacare begins to transform the American healthcare system. Companies that are already prospering and should continue to do so range from prominent blue chips such as WellPoint (NYSE: WLP), a major health benefits company, to promising small caps such as Quadrant 4 Systems (NASDAQ: QFOR), a growing software firm.
WellPoint is one of the largest insurers in the world.
As such, it is positioned to gain from Obamacare and the intent of the law is to fully insure the Ameirican populace, or come as close as possible. Wall Street has certainly reacted that way in its buying and selling of Wellpoint stock. For 2013, Wellpoint is up almost 50%.
Quadrant 4 Systems is another company whose stock price has surged in recent market action.
Quadrant 4 System is the maker of the QHIF, a cloud-based software program for health insurance exchanges. These exchanges are the foundation of Obamacare. The QHIF has platforms for both public and private health insurance exchanges. As detailed in a recent Fox Business article by Kate Rogers, the percentage of companies using private health insurance exchanges is expected to increase significantly in the future, which will only benefit Quadrant 4 Systems.
Growth is already very strong for both Quadrant 4 Systems and WellPoint.
On a quarterly basis, revenue is up more than 36% for Quadrant 4 Systems. For the same period, WellPoint has seen its sales increase by over 15%. Both WellPoint and Quadrant 4 Systems are trading at close to year highs.
For the long term investor, both Quadrant 4 Systems and WellPoint should continue to prosper.
Clarke and Company, a leading broker, just selected QHIX as, according to CEO Norman Clarke, "We researched the marketplace and selected QHIX over many other competitors. QHIX is capable of adapting to our business model instead of forcing us to adapt to the technology company's business model. In addition, we are able to fully customize the application to include every possible product and service our clients are requiring to adapt to the changing market around the Affordable Care Act."
Now trading around $89 a share, the mean analyst target price for WellPoint over the next year of market action is $94.53.