Shorts Betting Public Health Insurance Won't Happen

With the likelihood of a U.S. public health insurance option becoming a fading reality, the companies in this sector are going against the current bearish sentiment across the markets.

Data Explorers has been tracking the change in short interest (as measured by Percent Shares Outstanding on Loan) in the eighteen largest U.S. health care insurance stocks. Since mid-June the DESLI index for these names has dropped just over 10%. Such a drop in this sector index indicates that the short market does not believe that the government proposal will become a reality.

The companies with the highest level of short interest are; Torchmark Corp (TMK) (6.25%), Amerigroup (AGP) (6%), Molina Healthcare (MOH) (8.41%) and Wellcare Health Plans (WCG) (6.66%).

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