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Following a brief rebound at the open today, health insurance stocks resume their downward...

Following a brief rebound at the open today, health insurance stocks resume their downward trajectory on the back of yesterday's Supreme Court decision: UnitedHealth (UNH -2.5%), WellPoint (WLP -3.2%), Aetna (AET -3%), HealthNet (HNT -0.7%) and Coventry Health Care (CVH -2%).
Comments (16)
  • rappaport
    , contributor
    Comments (4) | Send Message
     
    Sellers of the insurers are mis-advised. There will be millions of new customers generated by the Obamacare law. The Affordable Care Act requires millions of uninsured Americans to buy policies from UNH, AET, WLP, others.
    29 Jun 2012, 03:34 PM Reply Like
  • montanamark
    , contributor
    Comments (1435) | Send Message
     
    LOL - one little problem; no one has a plan to pay for it
    29 Jun 2012, 03:37 PM Reply Like
  • WarEagle#1
    , contributor
    Comments (36) | Send Message
     
    Somebody needs to explain this to me also. The insurance mandate will result in an increase in revenue for UNH, correct or incorrect? Why are the insurers down while the hospitals are up?
    29 Jun 2012, 07:09 PM Reply Like
  • kcr357
    , contributor
    Comments (557) | Send Message
     
    @montana-Of course there's a plan to pay for it, it's called tax the working class some more.
    30 Jun 2012, 12:27 AM Reply Like
  • DianeLee
    , contributor
    Comments (352) | Send Message
     
    Follow the "smart" money. They're not buying, at least not yet.
    29 Jun 2012, 03:58 PM Reply Like
  • Artaqq
    , contributor
    Comments (108) | Send Message
     
    But, the writing is on the wall. This Administration has done nothing but demonize Insurance Companies, (and all other Large Corporations that aren't Unionized), from day one and, Obama is committed to a 'single payer system', he's just greasing the skids with these Companies until he can rid us of their 'greedy, self-serving' ways.
    Watch how fast Doctors and Nurses start joining Unions...
    29 Jun 2012, 04:22 PM Reply Like
  • American in Paris
    , contributor
    Comments (5504) | Send Message
     
    American insurance companies are responsible for 30% of the nation's health bill.

     

    It's scandalous. European government payor systems are far more efficient. Just compare US health care spending as a percent of GDP to France or Germany or the UK.
    29 Jun 2012, 05:30 PM Reply Like
  • Rudester
    , contributor
    Comments (2146) | Send Message
     
    It is amazing how parochial Americans that don't often travel overseas can be. About three years ago I was in Japan and because of some free time, I signed up for a tour. There was an elderly couple from the US on the tour and the man passed out while we where on a guided walk of some temple ground.

     

    The guide went with him and his wife to the hospital in an ambulance, while the rest of us returned to the bus. That night at dinner the elderly couple re-joined with us. Turns out he passed out from heat prostration (it was hot and humid), but because he hit the ground hard, the hospital did an MRI of his head.

     

    Do you know how much the hospital bill including the MRI was? It came to a grand total of $75 at the then current exchange rate.

     

    We have the costliest and least effective health care system of all the major economies.
    29 Jun 2012, 06:29 PM Reply Like
  • mikegg
    , contributor
    Comment (1) | Send Message
     
    "We have the costliest and least effective health care system of all the major economies."

     

    And, probably the richest doctors and most profitable hospitals, labs, etc. in the world!
    The doctors say underpaid doctors & medical personnel won't give you the best service and most up-to-date treatments, equipment, etc. available. So, do we really get the best and is it worth the extra cost?
    30 Jun 2012, 12:40 AM Reply Like
  • TwistTie
    , contributor
    Comments (2477) | Send Message
     
    There never was any "smart" money.

     

    I bought UNH because I like doing business with the company.

     

    Pretty dumb, huh.
    29 Jun 2012, 05:15 PM Reply Like
  • cpoehlman
    , contributor
    Comment (1) | Send Message
     
    The health insureres have been raking in record profits for over two decades now thanks to little oversight by the government which has allowed them to raise premiums at twice the general rate of inflation for the past 20+ years. That's why they had the GOP effectively block the public option inclusion into the bill because that would have made them compete directly with an honest & efficient program which would be run like Medicare. How this escapes the attention of the detractors is beyond belief. Ultimately any insurance company which agrees to participate in the federal government's program will benefit by adding many new enrollees to their plan.
    29 Jun 2012, 07:52 PM Reply Like
  • dcl3500
    , contributor
    Comments (23) | Send Message
     
    So which ones are going to do it? That is the big question and when, the other big question.
    30 Jun 2012, 12:41 AM Reply Like
  • Artaqq
    , contributor
    Comments (108) | Send Message
     
    Yes. Let the government step in and amp up regulations. That will be a death nail to the insurance industry. Our Government is so good at regulating and managing. Look at the Post Office and Airline Industry. Yes. Those are the professionals I want in my health care. How about we have them start tossing frivolous lawsuits out and bar these 'Slip and Fall' lawyers from ever working again...of course, they'll just run for Office. I wonder how much money we wasted chasing Roger Clemens around? Now it's Lance Armstrong's turn in the circus tent. How many people could have been insured with that money? Washington is not serious about this or good at anything. It's soundbites and talking points.
    5 Jul 2012, 10:53 AM Reply Like
  • Juangatoman8
    , contributor
    Comments (18) | Send Message
     
    We have the costliest and least effective Federal Government Administration of any large nation in the world. We're at or near near the bottom and liberals are uniformly in denial of that reality. And they want this Government to run Health Care?
    Why is US health care so expensive?
    For starters, by law, it cannot be sold across state lines. How smart is that?
    Second, the bumbling bureaucrats who run Medicare practically invite foxes into their hen houses 24/7; we taxpayers are ripped off daily and the Feds can't or don't know how to stop it.
    Third, we have no effective tort control; outrageous awards by bleeding heart juries have driven many good OB/GYNS, Anesthesiologists and Surgeons out of their businesses. Trial lawyers get filthy rich but nary a single liberal politician has spoken out against this obscenity. Insurance companies pass on the cost of irrational litigation awards in high mal practice premiums to the medical community. The Docs then either raise their fees or, in many cases, quit.
    Why do you think mid wives are found more often in hospitals, clinics and medical facilities throughout the country? Why are Physician Assistants now performing surgeries that, a few years ago, could only have been done by licensed surgeons? Follow the money and the truth emerges.
    I could list dozens of other facts, but those who are reasonably familiar with the health care systems in the US know the truth better than those who look at the smaller picture.
    I will wager that this dumb and dumber administration has never given a collective thought to promoting medical education to meet the demand of this ill conceivd law. Instead, they toss money at the Solyndras, instead of supporting education programs beginning in elementary school, to increase our supply of engineers, scientists and yes, MDs. What has this Administration accomplished? Nothing except to push through a law that none of them had read, few of us want, and shove it down the throats of American tax payers. The solution to this and our other pressing national issues is vote the bums out and start over with a program that makes sense. Ryan's is an order of magnitude more rational and certainly more affordable.
    30 Jun 2012, 02:16 AM Reply Like
  • tennis111
    , contributor
    Comments (57) | Send Message
     
    Excellent post, Juan. Hopefully people will WAKE UP and vote Obama and his clan out of office this November. They have been a disaster.
    30 Jun 2012, 03:21 PM Reply Like
  • Rudester
    , contributor
    Comments (2146) | Send Message
     
    @Juan,
    "For starters, by law, it cannot be sold across state lines. How smart is that? "

     

    And the insurance companies spent a lot of money on lobbyists and politicians to ensure that outcome years ago.

     

    "Third, we have no effective tort control; ..."

     

    Legal expenses account for around 12% of our total health care expenses. People love to point out tort control as the answer but it is only a small part of the problem.

     

    Here is one to chew on:

     

    In 2011:

     

    David Cordani, CEO of Cigna made $19 million (that's $52,054 per day).
    Stephen Hemsley, CEO of United Health made $13.3 million.
    Angela Braly, CEO of WellPoint made $13.2 million.
    Allen Wise, CEO of Coventry made $12.9 million.
    Mark Bertolini, CEO of Aetna made $10.5 million.
    Michael Macallister, CEO of Humana made $7.3 million.

     

    It is hard to imagine that a company that feels the need to pay so much to its CEO, and a CEO that can accept such riches, have the slightest understanding or interest in providing people “the care they need at an affordable price.”

     

    Additionally, around 30% of our total health care costs are spent in health insurance administrative processes, a euphemism for trying to figure out on what grounds to deny the claim. I could go on, but you get the idea.

     

    I would recommend to everyone that they read Wendell Potter's book "Spin"
    1 Jul 2012, 10:55 AM Reply Like
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