This Day On The Street
Continue to site right-arrow
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
TheStreet Open House

Vermont Wants Aetna, Cigna and Other Health Insurers Dead

NEW YORK (TheStreet) -- A single-payer health care system is coming for Vermont starting next year with full implementation in 2017.

Under a single-payer system, there is no role for health insurance companies such as Aetna (AET - Get Report) and Cigna (CI - Get Report) as the government pays all the medical bills. Many hope that the United States will implement a single-payer system. But there are unyielding factors as to why the stakeholders in Aetna, Cigna, UnitedHealth Group (UNH - Get Report) and others have few worries.

A major reason is that there is not the political courage to cut the pay for medical doctors.

In single-payer countries such as Canada, Norway and others, physicians make much less than those in the United States. That is the only way to make a single-payer system economically feasible. In Canada, the pay for medical doctors is about 50% lower. In Norway, it is nearly two-thirds lower. Salaries for virtually all medical professionals, not just doctors, would have to be greatly reduced for a single-payer system to work financially in the United States. Overall, physician pay in the United States is nearly 80% higher than in other nations.

Next, there is not enough political capital for single-payer supporters to take out the health insurance industry.

There are many, such as Senate Majority Leader Harry Reid (D-Nev.), who contend that the Affordable Care Act, or ObamaCare, is a major step toward a single-payer system for the United States...bzzzzt! Wrong! 

ObamaCare has beefed up the strength of the health insurance industry. Millions of new clients have been added. Billions in subsidies were just granted to health insurers by the Obama administration to keep premiums lower. Overall, the health insurance industry is much stronger as a result of the Affordable Care Act. Much weaker now, as a result of the Veterans Administration scandal, is support for government-run health care.

The most important consideration is that it would be political suicide for far too many members of Congress to cripple the American economy by voting to wipe out the health insurance industry.

1 of 2

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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
AET $108.54 1.10%
CI $130.04 0.82%
HUM $181.30 2.10%
UNH $121.00 2.53%
WLP $136.01 1.43%

Markets

DOW 17,976.31 +263.65 1.49%
S&P 500 2,086.24 +25.22 1.22%
NASDAQ 4,947.4410 +56.2220 1.15%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs