Gov Careers

By Phil Piemonte

Blog archive

The more things change ...

If you are still steaming over impending health insurance premium increases, or get angry (one way or the other) when someone mentions “Obamacare,” then you probably should stop reading this.

Late this afternoon, we spotted a headline that said the stock market was moving higher ahead of the mid-term election results. So of course we had to have a look.

When we checked the tickers toward the end of the trading day, the Dow as up a little over a half percent (somewhere around 60 points), the NASDAQ was up about 1 percent and the S&P 500 had risen about 0.75 percent. Decent increases, but nothing exceptional.

At the same time, on a whim, we checked to see how the health insurance sector was doing. Interestingly enough, the health insurance sector as a whole had gone up more than four times what the Dow had—a composite 2.4 percent by late afternoon.

Within the sector, the top 10 intraday increases belonged pretty much to the big health insurance companies you’d expect. Increases among them during the trading day ranged from about 2.25 percent to just over 4 percent.

While we don’t pretend to be Wall Street wizards, and all of these numbers may mean nothing, we can’t help thinking that that those who invest in health insurance stocks believe that the anticipated turnover of control of (at least) the House is going to improve the financial success of those companies. More profits, and so on.

Nothing wrong with profits, of course. Almost anyone who owns a mutual fund probably has some indirect ownership of health insurance stocks. A lot of the big firms reported very healthy earnings in the latest quarter. And companies are in business to make money for shareholders like you. Shareholders with high insurance premiums.

What does it all mean? Is there a way to adjust the system so everyone benefits? You tell us. We’re too tired to think about it anymore.

Posted by Phil Piemonte on Nov 02, 2010 at 12:13 PM


Featured

  • Cybersecurity

    DHS floats 'collective defense' model for cybersecurity

    Homeland Security Secretary Kirstjen Nielsen wants her department to have a more direct role in defending the private sector and critical infrastructure entities from cyberthreats.

  • Defense
    Defense Secretary James Mattis testifies at an April 12 hearing of the House Armed Services Committee.

    Mattis: Cloud deal not tailored for Amazon

    On Capitol Hill, Defense Secretary Jim Mattis sought to quell "rumors" that the Pentagon's planned single-award cloud acquisition was designed with Amazon Web Services in mind.

  • Census
    shutterstock image

    2020 Census to include citizenship question

    The Department of Commerce is breaking with recent practice and restoring a question about respondent citizenship last used in 1950, despite being urged not to by former Census directors and outside experts.

Stay Connected

FCW Update

Sign up for our newsletter.

I agree to this site's Privacy Policy.