Stocks of several big carriers outpaced gains on the broader market Tuesday, as enrollment began for a key provision of PPACA. Analysts warn, however, that investors in the sector could be in for a bumpy ride over the next few months.
State-based health insurance exchanges debuted as part of the overhaul's push to eventually provide health insurance coverage to millions of uninsured people. Insurance customers will be able to use these online exchanges to buy coverage with help from income-based tax subsidies over the next few months.
That coverage will start next year, and the exchanges could bring new business to the insurers that participate in them.
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