CNBC Stock Blog

Stocks To Play With Health Reform: Analysts

The health care reform bill passed by the House this weekend now moves to the Senate, which has its own version of a bill. So what does it mean for investors if a bill is finally signed? How do you play health care stocks? Les Funtleyder, health care strategist for Miller Tabak and Ipsita Smolinksi, health care analyst for Capitol Street gave their outlook on Monday to CNBC.

"The devil is in the details for the bill," said Funtleyder. "But the dire market predictions won't be as dire if it passes. On the macro level, it depends on who gets the pricing pressures, but for insurance companies, more customers (from the bill) would certainly turn out to be better."

"The worst is behind the health care insurers and it's hard to find losers because the worst proposals for reimbursements that came in with earlier versions of the bill, have been changed," said Smolinski.

Health Care Reform Winners & Losers

"There's still a chance of volatility through all this, but we prefer the managed care groups and pharmaceuticals, when it comes to the reforms," said Funtleyder.

(watch video for full interview)

Smolinski also said that hospitals along with the managed care groups were good plays with a reform bill passing. She said she expected some sort of health ill passed by the end of the year.

Funtleyder recommends:

Johnson and Johnson


United Health Care


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Funtleyder nor his company own any of the stocks he recommends.