The Affordable Care Act has helped millions of Americans receive healthcare coverage, with the uninsured rate now at a seven-year low, bolstering the outlook for healthcare services and sector-related exchange traded funds.
In the second quarter, only 11.4% of adults lacked some form of health insurance, a half-percentage point dip from the first quarter, reports Dan Mangan for CNBC.
The uninsured rate has declined almost 6 percentage points since late 2013, before the the ACA, or Obamacare, took effect.
Gallup and Healthways noted that the uninsured rate is at its lowest since the two groups began tracking the metric at the start of 2008. Consequently, the two warned that the rate may not any significant declines from this point forward. Enrollment for 2016 coverage begins on November 1, 2015, and the uninsured rates may dip slightly but less significantly than over the past year – Gallup argued that those who remain uninsured will likely be the hardest to convince.
Nevertheless, with more people in the healthcare system, the healthcare sector will continue to benefit from a larger client base.
For broad exposure, Health Care Select Sector SPDR (NYSEArca: XLV) and iShares U.S. Healthcare ETF (NYSEArca: IYH) provide access to the diversified healthcare space.