"Stocks appear to be trading on some disappointment that the guaranteed issue aspect of the law wasn't struck down," said Windley. "The diversified managed-care companies are impacted by the fact that ... somebody who wants insurance, they have to offer it to them, and they have MML floors -- the margin limitations on their business."
In a previous interview, Chris Rigg, a senior health care analyst at Susquehanna Financial Group, said that small group and individual health insurance business companies must spend at least 80% of premium dollars on medical care, and 85% for large group market, or else the company has to rebate money to consumers.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV