Those who thought that The Affordable Care Act, or ObamaCare, would be unhealthy for health insurance stocks such as Aetna (NYSE: AET), Cigna Corp. (NYSE: CI), and UnitedHealth Group (NYSE: UNH) have been proven wrong by the stock performance of each.

UnitedHealth Group, the largest health insurer in the United States, is up for the last week, month, quarter, and year of market action chart below).

It is much the same story for Cigna and Aetna, too.  For 2014, UnitedHealth Group is up more than 32 percent.  Over the same period, Cigna has risen by nearly 19 percent.  Aetna is up by close to 30 percent.

Much of that has to do with The Affordable Care Act.

ObamaCare has resulted in millions of more Americans obtaining health insurance coverage.  Those policies are very expansive in their coverage.  When more of a good in its high end is sold, the provider will benefit.

That is happening with health insurance companies thanks to ObamaCare.

The Affordable Care Act has brought millions of new customers.  These new clients are buying more expensive policies.  Wall Street obviously likes the end result!  Health insurances stock have been at the front of the bull market!

The bull market in stocks has also been very positive for health insurance companies.

Most of the income earned by health insurance companies is from investing.  Insurance companies “play the float” to profit: to prosper, insurance companies collect premium income, invest it, and then hope to make more money than is paid out in claims.  When the stock market is doing well, so are insurance companies due to greater investment income.

ObamaCare has been the law of the land for over four years.

Like most laws, there are good and bad provisions.  But there is no denying how beneficial it has been for Aetna, Cigna, UnitedHealth Group, and other health insurance companies!