We The People... Are Screwed

So the Senate passes a health care reform package, which is supposed to improve access to health care for all Americans, and reign in the wildly escalating costs. Should be a negative for the health insurance companies, right? Yet the health care industry is seeing its stock values soar.

Here's a quick breakdown of major health insurance company stock performance from October 27 to Friday's market close:

• Coventry Health Care, Inc. is up 31.6 percent;
• CIGNA Corp. is up 29.1 percent;
• Aetna Inc. is up 27.1 percent;
• WellPoint, Inc. is up 26.6 percent;
• UnitedHealth Group Inc. is up 20.5 percent;
• And Humana Inc. is up 13.6 percent.
  

By comparsion, the Dow Jones Industrial Average is only up 2.3 percent during that time; the NASDAQ Composite is up a (relatively) paltry 1.4 percent.


In addition to the spike in stock prices over the past month and a half, there is the rise in stock prices on Monday, after the bill cleared the next hurdle in the Senate, and, moved closer to passage. Of course, after reading the analysis by an analyst at Oppenheimer, it is easy to understand why.

"All in all, relative to the last version of health reform issued by the Senate, things have turned out pretty well for the health insurance industry," said Carl McDonald, an analyst at Oppenheimer. "In particular, all versions of a government-run health plan have largely been eliminated."

Couple that with the fact that lobbying firms are on pace to surpass last years $3.3 billion dollars
spent influencing Congress, and it becomes obvious who the winners are in this game.
Quick hint: It is not the American people.

Funny Stuff

A very funny clip from the Jimmy Kimmel Show, with Billy Dee Williams. This is the type of funny, topical parody that Satruday Night Live used to do when it was still a humorous show. Seems like a long time ago.
Maybe I need to start watching Kimmel more often.

Happy Next Birthday to Me

Finally, I have something to look forward to on my next birthday. Effective May 1, 2010, Michigan will join 37 other states in banning smoking in restaurants, and bars. The bill also bans smoking in just about any workplace, and there will be no such thing as a hotel room that allows smoking. The only exemptions are for the casino gaming floors.

It has been a long struggle getting this bill passed through a legislature that is completely in the pocket of the liquor and restaurant industry. Seems the non-smokers made enough noise to allow the majority preference to overcome the lobbyist.

I look forward to walking into a neighborhood bar, enjoying a birthday cocktail, and not go home smelling as if I had dropped a full ashtray over my head.