Omnicare will benefit from the Affordable Care Act, GOP opposition is 'perplexing,' CEO says
Omnicare, the nation's largest long-term care pharmaceutical services provider, is positioned to be successful as insurance coverage expands under the Affordable Care Act, according to CEO John Workman.
“We think that there will be new patients that would be available,” Workman said Monday on the Fox Business program “Countdown to the Closing Bell,” hosted by Liz Claman. Omnicare is “already aligned with the Affordable Care Act” and is looking in particular at growth opportunities in assisted living, Workman added.
Given how Omnicare stands to benefit from the ACA, Claman asked if Workman is “perplexed” by the staunch GOP opposition to the healthcare law, which led to a shutdown of the federal government that is now a week old.
“It is a little bit of a perplexing situation,” Workman said.
Omnicare's stock price has risen more than 55% since the beginning of the year, indicating that investors share Workman's bullish outlook. However, Workman noted some concerns related to the ACA, notably that cost sharing for specialty pharmaceuticals could hit patients in the pocketbook, and that the country's healthcare infrastructure could be strained due to the “influx” of seniors who become insured through the ACA's marketplaces.
The online marketplaces have encountered persistent glitches since they went live last week. The White House has said the overwhelming web traffic shows how successful the marketplaces will be once the system is running properly, but Department of Health and Human Services Secretary Kathleen Sebelius acknowledged she does not know how many people have signed up for a plan.