This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Health Care Winners & Losers: Insurers Fall

As Congressional Democrats today announce legislation designed to reinvent the nation's healthcare system, publicly traded HMOs stand to have their profits trimmed, should the bill pass into law.

Under the plan, health insurers would be required to provide coverage to people no matter what (including those with preexisting conditions). Companies could also face competition from government programs created by the new law to sell insurance to the public.

House Speaker Nancy Pelosi and Rep. Henry Waxman unveiled the bill at a press conference in Washington Tuesday afternoon. It will be debated in committee later this week.

The market, however, did not wait to respond.

Managed-care stocks were largely lower Tuesday. Leading the declines were Humana (HUM - Get Report), which fell nearly 8% to $28.21, and Health Net (HNT - Get Report), which shed almost 15% to close at $12.04.

The bigger names held up better. UnitedHealth (UNH - Get Report) slipped only 1% to $24.77; Cigna (CI - Get Report) lost a mere 11 cents to $24.57; WellPoint (WLP) was down just 9 cents to $49.69; and Aetna (AET - Get Report) traded basically flat, closing at $26.30.

Copyright 2009 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
WLP $136.01 1.43%
AET $107.72 0.00%
CI $131.13 0.00%
HUM $177.48 0.00%
HNT $56.43 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs