More reaction from the financial industry and Dennis Kucinich as the final shape of HCR in America takes place. The surge in health care stocks has already been the topic of a Dylan Ratigan-Wasserman Schultz lovefest. And now some international financial reaction from MarketWatch and Kucinich has a dire warning after the flip.
In a word, boffo.
Gregory Nersessian of Credit Suisse has raised his price targets for the Usual Suspects (Aetna, Cigna, Amerigroup Corp., Humana Inc., Molina Healthcare Inc., UnitedHealth Group Inc. and Wellcare Health Plans Inc.), saying:
... the [bill] is a positive first step. 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.
At least one Congressman, Dennis Kucinich, is emailing his list saying that Nersessian is actually predicting limitations on benefits and care in the future.
Full text of Kucinich's email blast:
MarketWatch also reports that the 85% MLR (medical loss ratio) will not "impose great hardship on any insurers." Indeed, on last night's Countdown, CIGNA whistleblower Wendell Potter was on to comment about a memo leaked from investment bank Oppenheimer & Co. to clients that the new MLR number:
"was 'workable' for insurers, especially if they can label certain items that count as corporate expenses for accounting purposes as health care for purposes of meeting the spending minimum."
UPDATE: Video of Potter on last night's Countdown.
The "watered down" quote comes from Mike O'Rourke, chief market strategist at BTIG LLC:
Health care investors find themselves having confronted their greatest fear, and, while there will be legislation, it will be significantly watered down ...
Americans and especially progressives also seem to be confronting their greatest fear on health care reform: a dysfunctional Senate tied in knots by an undemocratic filibuster rule, compromised by corporate donations, and under constant pressure from revolving door lobbyists.