ObamaCare Has Been Good for Large Insurers
Shares of the six major insurance companies in the S&P 500 are up an average of 16% over the last year …. And individual insurers are among the biggest gainers, with Humana Inc. … up more than 31%, good enough for the No. 2 spot overall among all 51 S&P health-care companies. Industry giant UnitedHealth Group Inc. …. a Fortune 25 company, surged by more than 28% during that time.
Full article on insurers’ gains in health care reform.
I wonder if some of the rise in stock prices has to do with the general recovery. Also, a public plan option was discussed during the health reform debate, which worried some investors that insurers may experience a shrinking market.
Anyone surprised at this result?
Bruce. I’m not surprised.
Ditto Devon. The returns are only meaningful when compared to the overall market and when compared to pre-bill declines. It’s difficult to say for sure what caused the returns.
However, this brings to mind a new investing strategy: Might investing in health insurers be a good way to hedge against growing health premiums? Does anyone know if there are any lobbying firms that have gone public? I’m sensing the next big investment bubble!