Shares of companies that operate private health plans turned higher or trimmed losses in afternoon trading Tuesday after a Senate committee rejected an amendment that would have created a government-run insurance option. Humana Inc. (HUM) shares, which had been down earlier, were recently up 1% at $38.41. UnitedHealth Group Inc. (UNH) shares gained 3 cents to $25.83.Whew, that's a relief to hear. We have averted the looming crisis of middling stock growth for insurance companies. I'm glad. I wouldn't want our precious health insurance industry to be unable to grub every dime it has coming to it. I'm just sad the stocks grew so little. 1%? 3 cents? For shame, Wall Street. I can only hope that the stocks went up in the previous days knowing that the amendments were almost 100% likely to be defeated. Still, we're not out of the woods yet. Chuck Schumer still seems optimistic and there's still a danger that a public option could come out of the House/Senate conference committee.
Private health insurers have bitterly fought the creation of a public insurance option, fearing that such an option would cut into their profits. Yesterday, Life And Health Insurance News reported that the insurance industry has responded positively to the defeat of the public option amendments. “We are pleased by the rejection of both the Rockefeller and Schumer amendments,” said Tom Currey, president of the National Association of Insurance and Financial Advisors. Janet Trautwein, president of the National Association of Health Underwriters, also told the press that her organization is pleased by the failure of the Schumer and Rockefeller amendments.
Stay vigilant, otherwise our health care system might have to suffer the indignity of lower quarterly dividend payments, creating insurance options that don't vacuum money out of people's pockets in return for nothing, and *shudder* covering sick people. Hopefully we can still avoid that nightmare dystopian future.
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