gmhsf/8.12.04 the impact of reform on the health care industry rosanne ott senior vice president...
TRANSCRIPT
GMHSF/8.12.04
The Impact of Reform on theHealth Care Industry
Rosanne OttSenior Vice PresidentPortfolio Manager
Topics
•Background
•What types of reforms are being considered?
•Most likely outcomes and timing
•Potential impact on current plan sponsors
•What are costs? Who will pay for plan?
•How are changes implemented?
•Opportunities
Background
Types of Reform Being Considered
Most Likely Outcome, Timing, and Impact
What are Costs? Who Pays?
•February 24 : President Obama proposal
$634 billion* $1.0 to $1.5 trillion
$318 billion Higher taxes
$190 billion Increased taxation offshore earnings
$ 200 billion Other Medicaid drug rebate, charitable donation limit, mortgage interest
limitations, and lots more!)
* 10 year reserve
MORE
LIKELY
FROM
FROM
FROM
Campaign:
•Life Sciences
•Bio-Generics
•Health Care Information Technology (HCIT)
• Insure the uninsured
Opportunities Created by President Obama
Now in Office:
•February 9: Stimulus $778 billion
$19 billion: Medical Records Recovery
$10 billion: Life Sciences – National Institute Health (NIH)
$600 million: Cancer Research
•Future Winners: Level playing field All of healthcare wins, for a price?
Opportunities Created byPresident Obama
WALL STREET’S ODDS OF
HEATHCARE REFORM PASSING:
99.9%
Conclusion
Disclosure
The views expressed are as of May 8; these views may change subsequent to this date, and they do not guarantee the
future performance of the markets, the Alger Health Sciences Fund, or any other mutual fund managed by Fred Alger
Management, Inc.; they are not meant to provide investment advice, should not be considered a recommendation to
purchase or sell securities, and there is no guarantee they will materialize.
Investors should not consider references to individual markets or sectors as an endorsement or recommendation to
purchase or sell such markets or industries. Additionally, any sectors mentioned, if owned, were purchased or sold as
part of an overall portfolio, and therefore reference to them herein should not be construed as a recommendation or offer
to purchase or sell any such sector. Transactions in such sectors, if any, may have been made for a variety of reasons,
including, without limitation, in response to cash flows or due to inclusion in a benchmark.
A Word About Risk
Growth stocks tend to be more volatile than other stocks, as the price of growth stocks tends to be higher in relation to
their companies' earnings and may be more sensitive to market, political, and economic developments. Investing in
companies of all capitalizations involves the risk that stocks of small- and mid-sized companies are subject to greater
risk than stocks of larger, more established companies, owing to such factors as limited liquidity, inexperienced
management, and limited financial resources. The Alger Health Sciences Fund concentrates its investments in the health
sciences sector. As such, the value of the Fund’s shares may be more volatile than mutual funds that do not similarly
concentrate their investments.
Performance current to the most recent month-end for the Alger Health Sciences Fund or any mutual fund managed by
Fred Alger Management, Inc. may be found on www.alger.com.
Investing in the stock market involves gains and losses and may not be suitable for all investors.
HSPP 0509