Thursday, June 28, 2012
Wall St. haz a sad
Or at least they are trying to pretend they do as Insurance Co. stocks are in decline as a result of the latest SCOTUS ruling on ACA. Why is not sure as the Insurance Co.s stand to intake Millions of new customers which will pad the bottom line even if the margins decline a bit.
In afternoon trading, the stocks of most major insurers — including Aetna, UnitedHealth, Cigna and Humana — were down 2 percent to 5 percent. WellPoint, which has a big presence in the individual market in states like California, was down more than 6 percent.This is the time to push for the insurance comapnies worst nightmare, Single Payer.
Some exceptions were the insurers that focus on Medicaid plans, like Molina Healthcare and Centene, which rose nearly 4 percent after the Supreme Court largely kept intact the law’s expansion of Medicaid.
The insurance stocks’ decline surprised Robert Laszewski, a health care industry consultant, who said that the law was a known quantity and the result of extensive deal making between industry players and politicians. “So that reaction boggles my mind,” he said.
Even if the health care law was not what insurers wanted, he said, it means that the bargain they struck will prevent the passage of more liberal options that the industry hates even more. “We’re not going to have the public option,” he said. “We’re not going to have a Canadian-style system.”
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