Managed care stocks hold potential amid health reforms

Health care reform is expected to bring an end to pre-existing conditions, lifetime caps and the practice of cutting off someoneâ??s insurance when they get sick. It will also produce as many as 32 million more insured people who need someone to administer their prescription drug plans.In many cases, a third-party administrator called a pharmacy benefit manager, or PBM, will process and pay their claims. “During the whole health care reform discussion, there was a lot of overhang on health care stocks in general, but PBMs were viewed as one of the sectors poised to benefit,” said Neil Chatterji, who earned an MBA in finance from the University of Wisconsin-Madison in May and was a participant in the business schoolâ??s Applied Security Analysis Program.