Thom Hartmann just reported that insurance company stocks are up today

[Sebastian Doyle]

Seems they interpreted the Presidents speech the same way I did. Difference is, they thought it was good news. (the mandatory corporatist part)

[emulatorloo]

1. Maybe they just realized that the "GOVERMENT TAKEOVER OF HEALTHCARE" meme is bullshit

It is hard to understand the actions of the stock market -- to me it is pretty much unfathomable.

I have seen companies report HUGE unexpected profits and watched the stock then take a nose dive.

[Autumn]

2. Stands to reason their stocks would

be up. They are winning.

[dgibby]

3. No doubt!

If mandated insurance is passed without being tied into a robust public option, it will mean even more profits for those greedy bastards.

[DrDan]

4. yep - good news for them - the administration fully supports their

continuing obscene profits

[mike_c]

5. captive consumers forced to buy their product....

What's not to like, for insurance companies? The downsides-- having to provide coverage for everyone, having to cover prexisting conditions-- are more than balanced by the upsides, I suspect, not the least of which is the criminalization of not buying their product. This will be a profit windfall for them, in the end. I'm not surprised investors are trying to jump on the profit ships before they sail.

[ProSense]

6. Maybe they realize they don't have much longer to profit. n/t

[Sebastian Doyle]

12. Right. Because with 40 million new customers overnight (who don't have a choice in the matter)

they wouldn't make a dime, would they? :eyes:

[Joanne98]

7. Wellpoint UP 2%

http://finance.yahoo.com/q?s=WLP&.yficrumb=oRMhb9FkBls

[Joanne98]

8. Humana UP 3%

http://finance.yahoo.com/q?s=HUM&.yficrumb=oRMhb9FkBls

[Hassin Bin Sober]

9. I remember when Illinois enacted mandatory auto insurance.

An agent I knew slept on his desk for months.

[Joanne98]

10. Tenet UP 3%

http://finance.yahoo.com/q?s=THC&.yficrumb=oRMhb9FkBls

[Nicholas D Wolfwood]

11. ...

http://en.wikipedia.org/wiki/Pump_and_dump

[stopbush]

13. Big deal. Unless Obama called for a single-payer system

the insurance companies are going to win. Like most rich corporations, they will make money no matter what. Zig that way, and they zag the other way. It's what they do.

Their stocks are up today because Obama was specific about a few things in his speech. That allows the insurance companies to know whether they go with their Plan A, Plan B or Plan C. Rest assured, all three plans were in place long ago. The reaction in the stock market would have been the same no matter what way Obama went, outside of demanding single-payer.

Hartmann is a CTist, a religious nut and a reactionary asshole. I don't get his huge following on DU.

[postulater]

17. what is a CTist? from Connecticut?

[stopbush]

18. Conspiracy Theorist, particularly, the JFK CTs.

Hartmann co-authored a book in 2005 called Ultimate Sacrifice that pins the JFK assassination on the Mafia. It's pure BS, as are 99.9999% of the JFK CT books out there.

[Joanne98]

14. Reuters

* No "game changers" seen in speech
* UnitedHealth, WellPoint, Aetna climb

By Lewis Krauskopf

NEW YORK, Sept 10 (Reuters) - Shares of U.S. health insurers climbed on Thursday as analysts said President Barack Obama's highly anticipated speech urging Congress to act on health reform revealed no "game changers."

Analysts also deemed the possibility of a public plan that would seriously undermine the companies as unlikely following the speech.

Obama called for quick action on a broad healthcare overhaul in his primetime address on Wednesday night , but the speech contained nothing unexpected, said Steve Shubitz, an analyst with Edward Jones.

"There wasn't anything said that is drastically changing the outlook as to what might come out of Congress," Shubitz said.

The prospect of dramatic overhaul of the healthcare system has pressured health insurer shares throughout the year.

Shares of UnitedHealth Group (UNH.N) and WellPoint Inc (WLP.N), the two largest health insurers each edged up less than 1 percent in morning trading. Other insurers rose more sharply, with Aetna (AET.N) up more than 1 percent and Cigna Corp (CI.N) rising more than 3 percent.

Obama "demonized insurers several times but didn't add anything new to the debate," Wells Fargo analyst Matt Perry said in a research note. "Overall we view the speech as neutral to insurers."

Shubitz said the plan resembled the framework proposed earlier this week by Senator Max Baucus, head of the powerful finance committee, indicating that Baucus' formal bill will be crucial for investors to watch.

"It's very clear that this is the route they're going to use to get something out there," Shubitz said.

Obama made his case for a public health plan that he said would lead to more competition in the private market. The controversial public plan idea has prompted fear from investors that companies would be unable to compete against it and eventually beget a government takeover of healthcare.

Obama said he had "no interest in putting insurance companies out of business" and would remain open to other ideas that ensure Americans have an option to secure affordable coverage.

Ana Gupte, a Sanford Bernstein analyst, said in a research note she was "even more confident after the Obama speech that the legislative outcomes will be moderate with no threat of a Medicare-like public plan."

Analysts noted that Obama remained open to other ideas aside from the plan, such as non-profit cooperatives that are seen as less threatening to the industry. Continued...
http://www.reuters.com/article/marketsNews/idINN1038450020090910?rpc=44

[tridim]

15. Pump and dump.

Happens all the time in the market.

[alarimer]

16. Of course they are.

They are going to reap a windfall from health "care" reform.

All those mandates for purchasing insurance is a boon for them.