Managed Care Stocks Rise As Health Reform Stumbles

TOM MURPHY

INDIANAPOLIS (AP) — Managed care stocks surged Thursday as the health care reform push wobbled in Washington.

Investors have worried for weeks about the possibility of a government payer being created to compete with private health insurers. Many Democrats, including President Barack Obama, strongly support that option as part of a plan to provide coverage for nearly 50 million uninsured people.

But Republicans and businesses groups have argued that it would lead to unfair competition by matching private insurers against a government plan that didn't have to make a profit. ...