Insurance Companies and Healthcare Reform

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AP ran a story today noting that after Democrats proved Sunday night that they had 60 votes to pass healthcare reform, stocks in health insurance companies rose. This suggests that investors think the Senate healthcare bill is a huge boon for insurers, and Nate Silver quantifies that boon here.

Fair enough. Healthcare reform does guarantee a considerable amount of new business for the insurance industry. But be careful.  Here’s a chart showing a basket of insurance company stocks over the past six months, and as you can see they’ve been rising pretty steadily the entire time.1 What’s more, the most recent surge began on December 3rd, well before passage of healthcare reform was assured.  And Monday’s spike in the first hour of trading, though impressive, was probably pretty speculative and has lost some of its steam already. Generally speaking, you should always be wary of people attributing broad-based market rises to specific events, and this seems like a pretty good example. I’m not sure I’d read all that much into a very short-term market reaction here.

1This chart includes both accident and health insurers, but if you take a look at individual health insurance companies you see pretty much the same trend.

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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