A Texas court has ruled the Affordable Care Act to be unconstitutional. As a result, there has been downward pressure recently exerted upon the managed care sector, of which UnitedHealth is the largest player.
The Republican government of the United States has indicated that they do not intend to attempt legislative changes to the present business model of UNH until after 2020. The process of “kicking the can” down the road is an indication of how difficult it is to come up with a plan that satisfies all stakeholders. While the court ruling is of interest, and may be important to note; for now, the business model of UNH is unchanged.
Record employment in the United States suggests that coming quarters for UNH will be positive. Accordingly, the large cap portfolio is using the current weakness to add, modestly, to the position in UnitedHealth (UNH-NYSE, $245).
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