Sector Snap: Insurer Stocks Rise On Reform Bill

NEW YORK (AP) — Shares of health insurers jumped Wednesday after an key Democrat released a much anticipated Senate version of a health care reform bill that excluded a government-run insurance option.

The so-called public option had been a contentious issue with health insurers, with the industry viewing it as unfair competition. Instead, Sen. Max Baucus released a proposed bill that would require every American to obtain health insurance, which would be a financial boon for the health insurance industry.

The Montana senator's bill would extend coverage to about 29 million Americans who are currently uninsured, though most features in the measure would not take effect until 2013.

Shares of Hartford, Conn.-based Aetna rose $1.19, or 4 percent, to close at $31.16 while shares of Minnetonka, Minn.-based Unitedhealth Group Inc. gained $1.59, or 5.7 percent, to close at $29.29. Elsewhere in the sector, Indianapolis-based WellPoint Inc. gained $1.70, or 3.2 percent, to close at $54.86 while shares of Philadelphia-based Cigna Corp. gained $1.15, or 3.7 percent, to finish at $32.54. Louisville, Ky.-based Humana Inc. gained $1.89, or 4.9 percent, to close at $40.67.

Hospital operators also caught a boost from the proposal, with Dallas-based Tenet Healthcare Corp. rising 21 cents, or 3.6 percent, to reach $5.95. Brentwood, Tenn.-based LifePoint Hospitals Inc. rose 26 cents to $26.14 while Naples, Fla.-based Health Management Associates Inc. rose 21 cents, or 2.6 percent, to $8.17.