Stock Market is up for Healthcare Insurance

Things are looking up for healthcare insurance companies.

The S&P Managed Health Care index .GSPHMO of large U.S. health insurers was up 3.8 percent, soundly outperforming a 2.5 percent decline for the broader S&P 500 index .SPX, following comments from the Obama administration that creating a public plan was not essential to a healthcare overhaul. [Reuters]

UnitedHealth Group Inc (UNH.N) shares rose 3.6 percent at mid-afternoon, WellPoint Inc (WLP.N) climbed 3.3 percent, Aetna Inc (AET.N) increased 5.2 percent, and Coventry Health Care (CVH.N) jumped 5.2 percent.

“Investors believe that risk of competition from a government-run plan has declined significantly, and that the co-op option being floated by Democrat legislators will be relatively benign to the HMO industry,” analysts at Jefferies & Co said in a research note.

The S&P Managed Health Care index has risen 18 percent so far this year, with strong gains since July as analysts said investors came to think a public plan was unlikely.

Related posts:

1. 51% favor Obama’s health care plan
2. Will the public option make it in the Senate?
3. Single Payer healthcare in other countries
4. Upgrading To National Health Insurance (Medicare 2.0)
5. AFL-CIO seeks investigation of health care insurance premiums