Money & Investing – Banks.com

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It’s a good day to be a health insurer. Despite all the moaning that health care companies have done about health care reform (or maybe because of it), the latest incarnation of “reform” is actually quite bullish for them. Not only is the Senate set to vote on a health care reform bill by Christmas Eve, but they also got a temporary relief on a possible tax. (They threatened that premiums would go up as a result. As if they weren’t just jacking up premiums for any random reason anyway.) As you might imagine, with the idea of forced health care for all, without anything approaching a reasonable and viable public option, has health insurers doing the happy dance.

And Wall Street can see where all of this is headed. Which is why health care stocks are leading today’s rally. Here is what MarketWatch reports about the bill, which, even with some imposition on health insurers, won’t really be onerous:

“In our opinion, the [bill] is a positive first step toward improving some of the more dysfunctional elements of the health-care system,” Nersessian said in a note to clients. “The heavy lifting will come when Congress is forced to slow the rate of medical cost growth through more aggressive payment restrictions and utilization controls down the road.”

Some key provisions were added to the bill just before the vote, mostly relating to standards on how much the industry must spend on medical expenses. But it appears none of these will impose great hardship on any insurers.

The Dow is more than 100 points higher so far, as investors join the health reform bill party. Also helping investor sentiment is the fact that economic data is expected to show improvement this week. With November home sales expected to show improvement, and a more positive durable goods report, expected later this week, it is little surprise that investors are feeling optimistic.

Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.