Obamacare woes won't hit health stocks, unless...

Traders on the floor of the New York Stock Exchange.
Getty Images

Political embarrassment over Obamacare has not spilled over into the markets yet, but it could if matters continue to worsen.

At this point, the Affordable Care Act, as it is more formally known, remains the law of the land and as such a boon to insurers, drug companies and service providers.

As the second-strongest sector this year on the , health-care stocks have been pricing in the ultimately successful implementation of a plan that seeks to provide coverage for millions of uninsured Americans.