Tuesday, December 15, 2009

Update on Health Insurance stocks and the Senate Legislation's expected impact

In keeping track of the Health Insurance companies of United Healthcare and Wellpoint's stock price to give us average Americans insight as to whether the proposed changes to the Healthcare legislation will be good for us. Well last night word came down that now the Senate has decided to eliminate the 55 year old Medicare idea, which was to help the Bill's passage instead of the Public Option. Senator Joe Lieberman was the one who again said he was not for it, even while, in September, he came out with the idea himself, as a way forward. Now he has gone back to his masters in CT and gotten more new instructions. So now he opposes it. I think Joe is looking to retire from the Senate when his term ends. Gee, I wonder what Industry he is going to work for? Any guesses?

Anyway, the charts above show that since the Public Option got scrapped, the Healthcare companies stocks have soared. In the case of United Healthcare, with the market gains including today so far, the stock is up 13.8% in just 7 business day. That is an unbelievable climb. Wellpoint has gained 9.8% during the same period. It too is a remarkable gain. The overall market has gained 0.7% in the same time period. It has been basically flat. So there is no doubt the Health Insurance public companies are thrilled at the idea of mandating insurance for everyone and subsidized by the government and no restrictions to contain costs in effect, for these companies. Bravo Congress! You are screwing up again to try to get a 60 vote majority to get this through. The Republicans wouldn't be so accommodating if they were in the drivers seat here. If they didn't have the 60 votes and they were in control of the Congress and it was a particular piece of legislation which would reduce taxes or something, they would go to reconciliation if they didn't have the votes and ramrod it through. I have always said the Democrats have the best teachers right next to them in how to wield power in Congress. It is the Republican Party. The problem is that the Democrats are made up of a lot of weak people.

UPDATE: 4:00pm PST

Well now you know we are losing as average Americans. The Democrats are trying to put lipstick on this pig and sell it to the public. It doesn't work for me. There are not real cost controls and we will be back dealing with this in 4 years after 2012 election. You just wait and see.

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