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Every doctor in the United States is now required to implement electronic record-keeping by 2015 – or face stiff penalties. So where do you suppose doctors are investing their money in the age of Obamacare's new technology requirements? How about in these four companies whose growth is guaranteed by law? Perhaps they know this windfall is still in the early stages… with years of growth and profits ahead. The details are here.
| | | 9/10/2014 By Philip Springer 
Have you noticed your doctor spending more time tapping on a laptop or tablet?
You're not alone. It's happening in doctors' offices across the country as physicians and health care providers switch to electronic health records (EHRs).
They have little choice. If they want to be paid for their services, they must digitally enter a full report of every patient visit. Hospitals and other providers are also included in the sweeping changes.
That leads me to a select group of companies in line for a spectacular government-legislated windfall.
I'll tell you more about four stocks at the very front of that line in just a moment.
But first, it's crucial that you understand why…
The Ground Is Shifting Under the Health Care Sector
Not all physicians are happy about EHRs. Many complain the technology is stealing time from one-on-one patient care—and some have been forced to join big medical groups to defray the cost of new computer systems.
But comply they must.
Obamacare decrees that doctors and hospitals adopt EHRs—or face substantial penalties for failing to do so.
If your doctor or hospital doesn't install a certified EHR system by next year, their Medicare reimbursements will be cut by 1%.
But that's just the start.
If the provider still fails to comply, reimbursements will be reduced by 2% in 2016, 3% in 2017, 4% in 2018 and so on in perpetuity. Ten years from now, the government could be holding back 10% of a doctor's Medicare income. The same penalties apply to Medicaid.
In addition to punishing health care providers for non-compliance, the feds will reward those who comply with higher Medicare reimbursements. For implementing EHRs, doctors can receive up to $44,000 in Medicare incentive payments and up to $63,750 for Medicaid.
But if you think this is only about medical records, think again.
The fact is, Obamacare is spawning a huge array of record-keeping impacting just about every aspect of U.S. health care.
And that's laying the groundwork for …
A Once-in-50-Years Profit Opportunity
Now I have to tell you something here: as a fellow investor, I urge you to put aside any personal feelings for or against this controversial law.
Instead, regard it with clear-eyed objectivity.
For the sake of your financial future, you must assess Obamacare as a fait accompli. Right now I'm advising investors to view it unemotionally as the once-in-a-half-century investing opportunity it is.
In addition to direct health care providers, the law affects pharmaceutical firms, staffing agencies, insurance companies, pharmacy benefit managers, medical device companies and information technology firms.
Here's what the latest numbers say: - Millions of new patients are on the way: Obamacare will extend insurance coverage to nearly 30 million people—the largest increase in the number of insured Americans since the creation of Medicare in 1965.
That means a lot of money is going to change hands. For example, all those new patients will worsen today's nursing shortage. Medical staffing agencies will be able to write their own ticket.
- Health spending is exploding: According to the U.S. Centers for Medicare and Medicaid Services, total health care spending will jump from nearly $3 trillion in 2013 to $4.8 trillion by 2021—an increase of about 70%!
- Rolls of red tape ahead: Administrative costs will reach $315 billion in 2018, up from $160 billion in 2013—a staggering 96.8% increase!
Just the red tape alone involved in health care now totals 7% of overall costs. The Department of Health and Human Services expects this percentage to hit double digits by the end of the decade.
The bottom line: Virtually nothing can derail the health industry's momentum … and a select group of stocks are positioned for huge gains.
I consider this one of the greatest investing opportunities of this generation—reminiscent of the years when IBM and Apple computers revolutionized U.S. business and society.
Even better for us as investors, this transformation has just begun—so the profits haven't started to reflect the boom to come.
Which leads me to the four companies I think of collectively as "the Medical Money Machine"…
4 Ways to Ride the Health Care Spending Wave
If you're not familiar with me, I'm the chief investment strategist at Personal Finance, the only financial advisory to amass 40 years of market-beating profits for its readers through bubbles, busts, stagflation and crashes.
My team and I have thoroughly researched the health care sector and uncovered four dominant stocks that are poised to soar as this historic shift marches ahead.
Together, they give you a big share of the growing profits from four key parts of America's revamped health care system: EHRs, generic drugs, Medicaid services and pharmacy benefit managers.
I'll reveal the names, ticker symbols and everything else you need to know about these four top secret picks in my just-released special report. It's called "The Medical Money Machine," and it gives you a complete roadmap to big profits from health care's historic—and government-ordered—bureaucracy expansion.
I'm ready to send you your own personal copy right now. It's yours absolutely free just for taking Personal Finance for a no-obligation test run.
These four surprising picks deserve a place in any investor's portfolio … or you may even want to set them up in a separate "get rich from Obamacare" portfolio.
Either way, the time to buy them is now—before the rapid expansion of America's health care bureaucracy hits full stride.
Go here to get instant access to this eye-opening new report.
Editor's Note: This is one of the most predictable "surprise" windfalls I've seen in my investing career—and Philip's perfectly timed report gives you everything you need to reap the biggest profits.
A subscriber once told me that reading Personal Finance is like putting on a pair of X-ray glasses and seeing opportunities invisible to others. I think that's a perfect analogy for Philip's new report, which gives you the four best ways to profit from this incredible once-in-50-years opportunity.
Remember: the coming health care windfall is mandated by the U.S. government, so you'll want to make sure you get in line for your share of the profits now.
Don't miss out.
Click here to get your free report and discover these 4 surprising picks now. | | |
Obamacare mandates that all health records go digital by 2015. This unleashes a powerful technology demand that companies are racing to fill. Four companies are leading the pack.
Our stellar pick is hands down the world leader in electronic health records. Clients include doctors, nurses, lab techs and pharmacists. Their software allows for instant access to patient records.
Here's the thing: Revenue in the first quarter jumped 15.4%, and that's just the beginning as Obamacare gains steam. Even if it's repealed, electronic records are here to stay. We have 3 more health powerhouses to share. Read more here.
| | | 9/10/2014 By Chad Fraser 
Health care stocks continue to perform well.
The Health Care SPDR ETF (NYSE: XLV), the largest health care ETF by assets, is up 62% in the past two years, well ahead of the S&P 500's 38% rise.
An increase like that might lead you to think the sector's biggest gains are behind it. Not so, according to Philip Springer, chief investment strategist at our Personal Finance advisory.
"I believe this sector still offers good profit potential, fueled by such factors as aging populations, growing demand for care in emerging markets and impressive medical advances," he wrote in an article in the August 27 issue.
The numbers bear that out. Consider the following: - Global health spending is surging: According to a recent report from Deloitte, worldwide health spending rose 1.9% in 2012, but accelerated by 2.6% in 2013. Between 2013 and 2017, health care costs will rise by an average of 5.3% a year.
- Emerging markets are seeing the fastest growth: Deloitte sees the biggest spending increases in rapidly growing areas like the Middle East and Africa (up 10.0%) and the Asia-Pacific region (up 7.1%).
- People are living longer---and need more care: By 2017, average global life expectancy is expected to hit 73.7 years, up from 72.6 in 2013. That's fueling an ongoing increase in the number of people aged 60 and over: in the next 50 years, their numbers will more than triple, to around 2 billion.
- Chronic diseases are on the rise: An older population is one factor spurring the spread of chronic conditions like heart disease, cancer and diabetes. Other causes include more sedentary lifestyles, rising obesity rates and changing diets. According to Deloitte, chronic diseases are responsible for 63% of all deaths around the world.
One company Springer believes is particularly well positioned to benefit from these trends is Personal Financebuy recommendationBaxter International (NYSE: BAX), a maker of medical devices, pharmaceuticals and biotechnology with a global reach.
(See below to discover four more companies Springer sees as poised to reap big profits from the coming boom in health care spending.)
In 2013, Baxter generated 42% of its sales in the U.S. The rest came from Europe (30%), the Asia-Pacific region (16%) and Latin America/Canada (12%).
Baxter boasts 61,500 employees and a $40-billion market cap.
The company operates through two main divisions: - Medical Products, which supplied 57% of Baxter's 2013 revenue, makes devices that deliver fluids and drugs to patients, including intravenous products and infusion pumps. This business also sells premixed drugs, anesthetics and supplies and services for people with end-stage renal disease.
- Bioscience (43% of revenue) provides genetically engineered and plasma-based treatments for patients with hemophilia and other bleeding disorders, as well as therapies for immune deficiencies, burns and shock and other blood-related conditions. Its products are also used in regenerative medicine, which aims to heal damaged tissues and organs.
Big Moves Are Reshaping Baxter
Baxter shares have risen 6.8% year-to-date, below the S&P 500's 7.6% gain. But even though the stock hasn't caused a lot of buzz with investors, management has made a number of important moves in the past two years.
The first came in late 2012, when the company acquired Gambro AB for US$4.0 billion, marking the biggest acquisition in its 83-year history. Sweden-based Gambro makes dialysis products for patients with acute and chronic kidney disease. The company is the world's second-largest manufacturer of dialysis machines, after Germany's Fresenius.
Baxter already had a presence in the dialysis market but mainly focused on in-home equipment, while Gambro's products are mostly used in clinics.
This is a large and growing market for the company: according to the Baxter, approximately two million people worldwide are on some form of dialysis, and that number is growing by more than 5% annually due to rising rates of diabetes and hypertension.
Another major move came in March, when Baxter announced that it would break itself into two separate firms along the lines of its current divisions; it aims to complete the split in mid-2015.
"The breakup makes sense because the two units have separate profiles, with the medical devices business being more defensive, while the biopharmaceuticals unit grows faster, albeit with greater risk," wrote Springer.
One of those risks is rising competition. For example, Biogen Idec's (NasdaqGS: BIIB) Eloctate hemophilia A therapy received FDA approval in June. Eloctate could become a significant competitor to Baxter's Advate treatment, which controls about 35% of the market. But Advate has the advantage of being well established: it was approved more than a decade ago and is now used in 64 countries.
Eloctate is expected to cost roughly the same as Advate, but it requires fewer injections. Baxter is currently developing a longer-acting version of Advate in response; it recently reported positive results from a Phase III study and plans to apply for U.S. marketing approval by the end of the year.
A History of Successful Spinoffs
The spinoff will let each company focus on its core business and respond more quickly to new competitors and changing market conditions.
To that end, management sold the Bioscience division's vaccine business to Pfizer (NYSE: PFE) for $635 million, leaving the new firm to better exploit its main hematology and immunology products.
Baxter has a history of successful spinoffs. In the 1990s, it spun off Caremark Corp. and Allegiance Healthcare Corp., which are now part of CVS Health Corp. (NYSE: CVS) and Cardinal Health Inc. (NYSE: CAH), respectively.
A third Baxter spinoff, Edwards Lifesciences (NYSE: EW), has gained over 1,350% since it started trading as a separate firm in 2000.
Across-the-Board Strength in Q2
Meanwhile, Baxter continues to see strong revenue growth at home, overseas and across its business segments. In the second quarter, international sales jumped 19% from a year ago, to $2.5 billion, while U.S. sales gained 12%, to $1.7 billion.
The BioScience division's revenue rose 7%, to $1.8 billion, while Medical Products revenue jumped 24%, driven by Gambro. Excluding Gambro's contribution, this business's sales increased 4%.
It all added up to an overall sales gain of $4.3 billion, up 16% from $3.7 billion a year ago.
Without special items, such as costs related to the Gambro purchase and the breakup plan, earnings rose 5% to $692 million, or $1.26 a share, topping the consensus forecast of $1.22 and the company's own guidance.
Baxter raised its full-year revenue growth outlook from between 9% and 10% to 10% and 11%. However, it narrowed the range of its 2014 adjusted earnings per share to $5.10 to $5.20 from a previous estimate of $5.05 to $5.25.
The stock trades at a reasonable 14.4 times the $5.15 midpoint of the 2014 forecast. It also yields a healthy 2.8%, and its payout has jumped 343% over the past eight years.
4 More Ways to Profit From the Coming Health Care Boom
U.S. health care spending is set to skyrocket by 70% between now and 2021---and administrative costs are poised to surge 96.8% by 2018!
Nothing can derail the health industry's incredible momentum. Obamacare guarantees it. The law will trigger the biggest increase in the number of insured Americans since the creation of Medicare in 1965.
It all adds up to a government-legislated windfall for the 4 companies Personal Finance chief strategist Philip Springer is recommending right now.
These 4 terrific stocks are sitting right in the path of the greatest explosion in bureaucratic spending in U.S. history---and we're ready to send you everything you need to know about all of them FREE.
Full details here. | | |
Obamacare places huge penalties on doctors who don't switch to electronic health records. It's the law, and all must comply or face stiff penalties. It's not just doctors. It's pharmaceutical firms, insurance companies, medical device companies and more. The deadline to switch is 2015. Four companies have no choice but to reap a spectacular government-legislated windfall. And the profits are just getting started. You don't want to miss it. Details here.
| | | 9/09/2014 By Bob Carlson Summer began with announcements of a couple of surprising changes about IRAs. These important rules should figure in your IRA planning. First, the Supreme Court weighed in. The background is that in 2005 the federal bankruptcy law was revised. One of the revisions eliminated a patchwork of state rules and made clear that IRAs and similar retirement accounts are protected assets in a bankruptcy. Creditors cannot be awarded these assets in a bankruptcy. But the Supreme Court said the law is not as comprehensive as many thought. In the case, a married couple declared bankruptcy after their pizza shop failed. Their main asset was $300,000 in an IRA the wife inherited from her mother. They owed $700,000 to various creditors. The bankruptcy trustee sought to distribute the IRA to the creditors. The Supreme Court ruled that an inherited IRA is not protected in the bankruptcy code. An inherited IRA differs from a personal IRA in ways that mean it isn't a retirement asset. When an IRA is inherited, distributions must begin and can't be delayed until retirement. The beneficiary isn't allowed to make additional contributions and can take distributions at any time, including a distribution of the entire account. Because of the differences, an inherited IRA is not protected as a retirement account. You might want to consider this ruling when naming beneficiaries of your IRAs. A child or grandchild who has financial problems or is in an occupation at high-risk from creditors (such as a surgeon) might not be an appropriate beneficiary of an IRA. You could leave that loved one off the beneficiary list for your IRA and let him inherit other assets. Or you could try naming a trust as beneficiary of the IRA instead. But the rules for naming trust as IRA beneficiaries are very restrictive. You want to receive good legal advice before trying it. Some commentators have argued that the reasoning in the Supreme Court's decision also could apply to rollover IRAs and some other IRAs. That is speculation, since the court ruled only on inherited IRAs, but the reasoning could be expanded to other types of IRAs. Keep in mind that states can offer IRAs greater bankruptcy protection than the federal law, and some do. If the creditor protection of an IRA concerns you, check your state's bankruptcy law or of the states in which your beneficiaries live. Longevity Annuities in IRAs In other IRA news, the Treasury Department issued final rules on longevity annuities in IRAs, 401(k)s, and similar accounts. In a longevity annuity, or deferred income annuity, you deposit a lump sum with an insurer, usually when you are between ages 50 and 65. The insurer holds and invests the money in its own account for at least five years. You select the holding period, and it can be as late as when you turn 80 or 85, depending on the annuity. When the holding period ends, the insurer begins paying you a fixed income for the rest of your life. The annual payment is fixed when you make the initial deposit in the annuity. A downside of a longevity annuity is that there is nothing for your heirs to inherit. Also, if you don't live to the starting age, the insurer keeps the money. If you live only a few years after the starting age, the insurer comes out ahead. (Some longevity annuities offer riders that will provide something for a beneficiary in case of a premature death, but the cost is a lower annual payment for you.) The advantage is that you receive the promised annual amount no matter how long you live after the starting date. You have a steady stream of income you can't outlive. The problem until the new rules was how the annuities figured into required minimum distributions you must take after age 70. It wasn't clear how to compute an RMD when part of an IRA was invested in an annuity that wouldn't begin payments until the future. Many people wouldn't buy the annuities through IRAs because of the uncertainty, and many IRA sponsors wouldn't allow them. The new rules state that the longevity annuity needn't be considered in RMD calculations if the annuity is no more than the lesser of 25% of the account's value or $125,000 at the time of purchase. The non-annuity portion of the account is used to compute RMDs before the annuity start date. In addition, an annuity counts as a longevity annuity under the rules even if it returns premiums to a beneficiary as a death benefit. These rules don't apply to variable annuities or to other types of annuities. The new rules make longevity annuities a more attractive purchase through an IRA because they eliminate uncertainty and allow favorable RMD calculations. The three largest longevity annuity sellers, comprising 90% of the market, are New York Life, Massachusetts Mutual Life, and Northwestern Mutual Life, according to Limra. | | |
Notice how many prescription drugs are generics? Every year, scores of brand-name medications lose their patent protection, opening the door to generics. Over the next three years, patent expiration will result in $79 billion in sales to manufacturers of lower-priced generics. As generics take over more of the prescription drug industry, one aggressive global outfit should post virtually unstoppable gains. Here's the name.
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