Insurer Stocks Fall on Reform Bill Passage

WASHINGTON (TheStreet) -- In another step toward President Barack Obama's vision of health care reform, the Senate Finance Committee passed its version of a bill on Tuesday afternoon by a 14-9 vote.

Senate Democrats managed to show some solidarity after Maine Senator Olympia Snowe, who stayed mum on her status in the days and hours leading up to today's vote, ultimately voted against her party in favor of the 10-year, $829 million package. Still, Snowe reserved support on any future versions of the legislation.

The vote also marks a triumph for Montana Senator Max Baucus, chairman of the committee, who emerged as a chief power broker in Washington's daily health reform machinations -- much to the chagrin of the liberal wing of the Democratic party.

On the heels of the bill's passage, a cluster of health care stocks were down on the day. UnitedHealth(UNH Quote), WellPoint(WLP Quote) and Aetna(AET Quote) were each moving lower, down 3%, 0.5% and 2.9%, respectively.

Medical device and supply makers Johnson & Johnson(JNJ Quote) and Boston Scientific(BSX Quote) were lower by 2.3% and 0.7%.

Abbott Laboratories(ABT Quote), on the other hand, was holding steady, up by 0.3% in the afternoon.

Tenet Healthcare(THC Quote), Community Health Systems(CYH Quote) and Universal Health Services(UHS Quote) were representative of the hospital sector, down 1.3%, 1.3% and 0.6%, each.

Though the bill's passage was a largely forgone conclusion given the Democratic majority on the committee, the vote still marks a landmark of sorts. The health reform legislation has gone farther than President Bill Clinton's similar overhaul efforts in the early 1990s. From here, the bill will be readied for the floor and blended with a more liberal version offered by the Senate Health, Education, Labor and Pension Committee.

Still, just before the vote, ranking Republican Chuck Grassley expressed the sentiments of many in the opposition, who said the legislation would ultimately lead to higher costs for Americans.

"There's a lot in this bill that's just a consensus that needs to be done, but there are other provisions of this bill that raise a lot of questions," Grassley said, according to The Associated Press.