New Medicare Bill Knocks Health Care Stocks

A medical bill that won congressional approval Wednesday would cancel a planned 11% pay cut to physicians who treat Medicare patients -- a move funded by cutting reimbursements to insurers.

In an unexpectedly early return to vote, Sen. Edward Kennedy (D, Mass.) who in June had surgery to remove a malignant brain tumor, helped champion the measure.

The bill is funded in large part by cutting some $13 billion in reimbursements to insurers -- such as UnitedHealth Group (UNH Quote)and Aetna (AET Quote) -- that contract with Medicare, according to the Reuters report.. ...