Health Insurance Stocks Decline on News of Senate Passage of Reform Bill

[FrenchieCat]

They didn't drop that much, but enough,
since the talk all over was how bad the Senate bill must be
cause Health Insurance stock had soared...

Well, according to the below, as soon as it was know the Senate Bill would pass,
the health insurance stocks flatten.

We will have to see in the next few weeks what happens,
although that still won't really tell us much.

But it makes for interesting conversation anyways. :shrug:



Health Insurance Stocks Decline on News of Senate Passage of Reform Bill;
Have Underperformed Market Since Start of Week

12.24.2009

by Nate Silver


Just the data. The "start of week" comparison is relevant because it was over the weekend that the Democrats secured Ben Nelson's vote, making passage of their health care reform package much more likely.



http://www.fivethirtyeight.com/2009/12/health-insurance-stocks-decline-on-news.html

[LiberalAndProud]

1. Aside from the health care bill, I'm not unhappy to see their stocks

on the decline.

I suspect some who were investing in the insurance industry were betting that this bill would fail as all those that have gone before have done. It really is remarkable that health care reform will finally be taking its first feeble steps in the US. I had almost stopped hoping.

[FrenchieCat]

2. It ain't done till its done!

I sure hope its a done deal.

I want to see what they do the give us some instant benefits beyond
what has already been promised.

I think they will have to,
cause many will have to see something right away....
come election time,
so that the Republicans can't just lie their way to
victories they don't deserve.

you know how we are...Fickle Americans.

[MerryBlooms]

3. I think part of the reason their stocks were climbing

pre-senate passage, was the fact they were raising their premiums like they were on fire. The insurance industry is bound to show a huge profit margin in the months before passage. As soon as it appeared HCR of some sort was a sure thing, everyone I know had their premiums go up! The industry appeared to be scrambling to gouge their customers.

I suspect we'll see their stocks rising again after the holiday break and until regulation kicks in on these vulturous bastards.

[NJmaverick]

4. As I am sure most of you know

Stock Market performance is a poor measure to judge anything other than the emotions of investors. The idea that the rise or fall of stocks can indicate a bill is sound or poor just doesn't make sense. I have seen the Stock Market rise on good news, only to plummet as investors suddenly descide good news is bad news because a stronger economy will cause the feds to reaise interest rates (as raising rates lessens the desire for stock).

[MerryBlooms]

5. I think the speculators have been having a field day. n/t

.

[HughMoran]

6. I dispassionately read posts on this topic

A one-day drop of 20% or more on the day a bill was passed would raise an eyebrow for me, otherwise, not so much.