Perspectives Blog

Death, taxes and Medicaid expansion

Harlan Sonderling, CFA, Senior Healthcare Analyst | September 8, 2014

…and the move by states toward Medicaid managed care and away from traditional fee-for-service. Medicaid managed care enrollment will expand as states transition beneficiaries from fee-for-service coverage to managed care and the “opt-in” states broaden eligibility. Medicaid coverage expansion will be a source of accelerating revenue and earnings within the managed care industry. The 2010 Affordable Care Act (ACA) significantly expanded both eli…

The three tax thresholds of the new tax regime

Abram Claude, Vice President, Columbia Management Learning Center | November 3, 2014

…2013, there were new tax rates and provisions that became effective as a result of the American Taxpayer Relief Act of 2012 and taxes associated with the Affordable Care Act (ACA) of 2010. Among them were three distinct income thresholds that investors could cross over, each with unique tax implications. The first threshold triggers the two surtaxes related to the Affordable Care Act of 2010. Crossing the second threshold begins a phase-out of p…

Antibiotic resistance – What it means for drug manufacturers, hospitals and diagnostic companies

Columbia Management, Investment Team | May 12, 2014

…health. Twelve more pathogens were classified as serious, and three as concerning. Hospitals and Diagnostics The Affordable Care Act specifies that the lowest-performing quartile of U.S. hospitals will be penalized on a variety of hospital acquired conditions (HAC). Underperformers will see a 1% Medicare reimbursement reduction beginning in fiscal-year 2015. According to Kaiser Health News, U.S. hospitals would forfeit about $280 million in Medic…

The taxman cometh

James Dearborn, Head of Municipal Bonds | March 13, 2014

…tax environment that came into effect January 2013 with the passage of the oddly named American Taxpayer Relief Act of 2012 and the introduction of taxes associated with the Affordable Care Act (ACA) of 2010 (Obamacare). These new and higher levies are likely to cause real pain to taxpayers as they deal with potentially much larger tax bills, even if their income remained stagnant year-over-year. The two major sources of the increased pain emana…

The role of asset location

Abram Claude, Vice President, Columbia Management Learning Center | November 18, 2014

…and timely “Navigating the New Tax Regime” topic. The tax elements resulting from the American Taxpayer Relief Act and the taxes associated with the Affordable Care Act beg reconsideration of the adage, “It’s not what you make, it’s what you keep.” In other words, financial advisors and investors should have a good understanding of what is different about taxation in 2013 and beyond, how it affects after-tax returns and then conside…

Profit margin watch

Tom West, Director of Equity Research | October 13, 2014

…ctor saw disruption in the form of legislation around pricing and offerings. Healthcare has absorbed much of the Affordable Care Act pretty well. Managed care companies have held onto profitability, and some of the providers are benefiting from the growth in utilization. The financial sector was hit with a variety of restrictions—from limits on overdraft fees on small checking accounts to the amount of capital that must be held by the largest cap…

Second quarter U.S. corporate earnings wrap-up

Tom West, Director of Equity Research | August 18, 2014

…ed companies beat low expectations in the second quarter. Expectations in healthcare were for a pickup in health care utilization this quarter following a seasonally challenged first quarter. Hospital stocks saw robust profit gains ahead of expectations driven by the Affordable Care Act (ACA) and reduction of bad debts. To a lesser extent there were modest improvements in utilization, but this may have been more share driven than market driven be…