Investors flock to health insurance stocks

[rollingrock]

now you know where you can put your money!



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"All in all, relative to the last version of health reform issued by the Senate, things have turned out pretty well for the health insurance industry," said Carl McDonald, an analyst at Oppenheimer. "In particular, all versions of a government-run health plan have largely been eliminated."


...since Oct. 27, 2009:

* Coventry Health Care, Inc. is up 31.6 percent;
* CIGNA Corp. is up 29.1 percent;
* Aetna Inc. is up 27.1 percent;
* WellPoint, Inc. is up 26.6 percent;
* UnitedHealth Group Inc. is up 20.5 percent;
* And Humana Inc. is up 13.6 percent.



The rise in stock prices has been particularly striking in the period since Sen. Joe Lieberman (I-Conn.) said on October 27 that he would filibuster a Senate health care reform bill if it included a public option - a threat that caused Senate leaders to cave without much of a fight. Thanks to Lieberman's threat, health insurance companies dodged a major competitor that could have lowered margins, siphoned off customers and impacted profits.

By comparsion, the Dow Jones Industrial Average is only up 2.3 percent during that time; the NASDAQ Composite is up a (relatively) paltry 1.4 percent.

www.huffingtonpost.com/2009/12/21/seeing-public-subsidy-not_n_399733.html

[niceypoo]

1. The institutionalization of private insurance

[Oregone]

2. Nailed it

They didn't put all this effort into the "win" to see it easily undone by some pest called "single-payer". These laws make private insurance an permanent integrated component to the system.

[Skittles]

3. and some DUers are still cheerleading this piece of shit bill?

SHAME

[Mari333]

6. some put glitter on a turd and call it a diamond

hoping you cannot smell the turd.

[rollingrock]

7. Maybe these DUers own stock

in the health insurance industry?

[frazzled]

4. You should look at this chart at the same time

And then read the accompanying analysis at http://voices.washingtonpost.com/ezra-klein/2009/12/can_the_stock_market_predict_h.html

[Parker CA]

8. Interesting piece and comments that follow. Thanks for posting!

[rollingrock]

10. The period from Summer 2009 to the present is what matters here

and that part of your graph shows a sharp increase in health insurance stocks.

The period of time BEFORE Summer 2009 is entirely irrelevant, because it was not effected in any way by the current healthcare bill. The big downturn in your graph before Summer 2009 was caused by the RECESSION, and the WHOLE STOCK market was in decline at that time, not just health insurance.

...so your graph is misleading and wholly irrelevant to the discussion, as it relates to the current healthcare bill.

[frazzled]

12. I don't think we know what affects the stock market

It's just a big casino; gambling. I don't really believe there's much rationality to it at all. You could just as well link the cause of the rise in insurance stocks to the recent drop in temperatures, to the post-thranksgiving decrease in Turkey sales, or to Beyonce's latest record. Who the hell knows.

Or, here's an idea: maybe the rise is due to the insurance companies trying to get all they can in before regulations kick in. Very interesting. Because when the bill passes, if they try to jack prices or kick people out they will be subject to regulatory review and banned from participation in the exchanges ... before the exchanges are even up.

[rollingrock]

13. Regardless of what you think may have caused

the downturn spike prior to Summer 2009...what in the world does that got to do with the current healthcare bill?? how in the world does the health insurance prices back in 2005 relate to the prices in December 2009? do you have a point to make at all?

[frazzled]

14. Not my point ... the points were at the link

But then, I should know better than to put links in posts.

[phasma ex machina]

5. Deleted

[RB TexLa]

9. I'm waiting for one rumor to come out of the reconciliation to buy up some more CI and UNH

There will be something rumored to give a nice quick drop on these.

[rollingrock]

11. When the bill passes

their stock prices will go up even higher....explode, in fact.