logo
  Join        Login             Stock Quote

Private Companies Help Reform Healthcare

 May 12, 2009 03:13 PM
 


Highlights include WellPoint, Inc. (WLP), Humana Inc. (hum), Coventry Health Care, Inc. (cvh), Health Net Inc. (hnt), Molina Healthcare, Inc. (moh), Amerigroup Corporation (AGP) and Aetna Inc (aet).

The private sector is now partners in healthcare reform.

Key healthcare stakeholders met yesterday with President Obama to pledge their support in slowing the rising cost of healthcare over the next decade.? In a letter addressed to the President and signed by the American Medical Association, the Service Employees International Union, and the main trade groups from the drug, hospital, medical-device and health-insurance industries, healthcare industry representatives vowed to stem the rate of increase in future health and insurance costs by 1.5% per year for the next 10 years, or approximately $2 trillion.

Although lacking detail, the letter did propose a co-ordinated industry effort in developing strategies toward the following: administrative simplification and increased transparency of the healthcare system; the alignment of quality and efficiency incentives across healthcare providers; and the increased use of health information technology to improve delivery of services.

In sharp contrast, healthcare reform in Washington has to-date been more focused on the reduction of government spending. Various proposal have been floated, including: potential bundling of payments for hospitals; the reduction of hospital re-admissions; lowering of Medicare Advantage payments; changes to the tax treatment of health insurance benefits; and even the creation of a public plan option. The so-called "public plan" option would allow people to enroll in a publicly-sponsored health plan, potentially competing side-by-side with private insurance plans.

The Senate Finance Committee is scheduled to hold a roundtable discussion on the financing of health care legislation later this week, while discussion on the specific details of any change is expected to continue in Congress for several months yet.

We believe yesterday's action by the private sector signals a new spirit of co-operation in the healthcare reform process and an opportunity to influence the future healthcare landscape. In the case of health insurers, in particular, engagement with government efforts to stem costs strengthens the case against a proposed "public plan" option. Our health insurer sector universe includes WellPoint (WLP), Humana (HUM), Coventry Healthcare (CVH), Health Net Inc. (HNT), Molina Healthcare (MOH), Amerigroup Corporation (AGP) and Aetna Inc (AET).
iOnTheMarket Premium
Advertisement

Advertisement


Comments Closed


rss feed

Latest Stories

article imageChart Says This Retailer's Comeback Isn't Finished

One of the surprises, at least on the surface, of the market's recent swoon was the outperformance of read on...

article imageETF Performance Review: Major Asset Classes | 19 Dec 2014

It’s all about real estate investment trusts (REITs) these days when it comes to bullish performance among read on...

article imageOil and Global Stock Markets Rebounding Sharply

So far so good on our expectation of a 4 to 5% pullback and then a resumption of the bull read on...

article imageGrading the FOMC

Love its members or loathe them, you have to admire the gradual impact the policy-making committee has had read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center

Related Articles:

6 Dividend Growth Stocks With Very Little Debt
More Articles on: Medical



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.