Did Healthcare Reform Boost HMO Stocks?

John Graham of Pacific Research Institute thinks so:

The most likely explanation for health plans’ stock performance is that investors saw PPACA itself as a boon for health plans. Also, investors likely do not believe that Republicans will eventually repeal it, but instead exercise even less oversight and give health plans more favors than a single-party Democratic federal government would.

 

 

It’s an intersting analysis, but I’m going to wait until the current — favorable — underwriting cycle turns down and the full impact of the law’s taxes, profit caps and exchanges kicks in.

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