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CNBC Reporter
A healthcare reform vote in the House tomorrow; why are HMOs trading up?
You'd think the likelihood of a vote—and better than even chance of passage—would be a negative for HMOs.
The bill under consideration:
1) requires individuals to buy insurance
2) provides subsidies for many low — and moderate-income people
3) requires employers to offer healthcare coverage
4) includes a public option.
But HMOs are up today—because many are calculating that the Senate is where reform will stall. Consider that the Senate:
1) is unlikely to finish their version of the bill for a month
2) even if it is finished, there may not be time for a House-Senate conference by Christmas
3) if it is pushed into 2010, there is a strong chance political headwinds will derail it.
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Questions? Comments?
POPULAR TRADER TALK POSTS
- Risk Trade Is Back On
- This Week's Biggest Story: The Dollar
- Corporate Issuance Continues at Torrid Pace
- The Bernanke Dollar Bounce & Gross Says Forget About Rate Hike
- Colgate Really Sparkles After Hours
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