Many healthcare stocks are going up in anticipation of people
being 'forced' to buy policies. Assuming it isn't stopped as being
unconstitutional as our founders intended, everything I read infers
the penalty will average far less than most new policies. Once
people learn this, they will opt out and wait for the IRS to track
them down and pay the penalty. Because you can't be turned down,
you can buy the insurance when you need it only and drop it again
after you use it. For routine care, you can pay cash and negotiate.
If will be far cheaper to pay the penalty than for insurance in
most cases.
This entire program relies on the young and healthy who don't
need it to subsidize the old and sick who do. But the young may
just opt out. This will turn out to be just another big government
tax and little about healthcare. Rates will be going up not down,
as insurance companies are now forced to cover everyone regardless
of ailment. Companies currently covering employees will drop out
due to higher rates and give the job to the government. Very soon,
insurance companies will likely be good shorts, not the buys they
are perceived today. Should be interesting to watch.
You nailed it George. I am not in my 20s anymore but once this
monstrosity takes effect I will dump my insurance...they want to
destroy the insurance industry and I may as well help out and do my
part.
I figure the US ought to go on a huge spending spree and borrow
as much as we can. I mean we are going to go bankrupt anyways may
as well have one heck of a spending orgy first.
Already they are talking about the NEED for a national sales tax
to pay for all this....forget that. If the Republicans were smart
they would run on both repealing this monstrosity and on passing
the FAIR TAX(wiping out all other taxes!) But since both parties
are out for themselves and not the people, well, I guess we are
screwed.
Healthcare Stocks
Posted by george_l on 22nd of Mar 2010 at 03:34 pm
Many healthcare stocks are going up in anticipation of people being 'forced' to buy policies. Assuming it isn't stopped as being unconstitutional as our founders intended, everything I read infers the penalty will average far less than most new policies. Once people learn this, they will opt out and wait for the IRS to track them down and pay the penalty. Because you can't be turned down, you can buy the insurance when you need it only and drop it again after you use it. For routine care, you can pay cash and negotiate. If will be far cheaper to pay the penalty than for insurance in most cases.
This entire program relies on the young and healthy who don't need it to subsidize the old and sick who do. But the young may just opt out. This will turn out to be just another big government tax and little about healthcare. Rates will be going up not down, as insurance companies are now forced to cover everyone regardless of ailment. Companies currently covering employees will drop out due to higher rates and give the job to the government. Very soon, insurance companies will likely be good shorts, not the buys they are perceived today. Should be interesting to watch.
This articlehas a more detailed view.
great post thanks
Posted by rank10 on 22nd of Mar 2010 at 03:46 pm
great post thanks
Spot on
Posted by perthx on 22nd of Mar 2010 at 03:45 pm
You nailed it George. I am not in my 20s anymore but once this monstrosity takes effect I will dump my insurance...they want to destroy the insurance industry and I may as well help out and do my part.
I figure the US ought to go on a huge spending spree and borrow as much as we can. I mean we are going to go bankrupt anyways may as well have one heck of a spending orgy first.
Already they are talking about the NEED for a national sales tax to pay for all this....forget that. If the Republicans were smart they would run on both repealing this monstrosity and on passing the FAIR TAX(wiping out all other taxes!) But since both parties are out for themselves and not the people, well, I guess we are screwed.
government issued health insurance for
Posted by jbidmt on 22nd of Mar 2010 at 03:39 pm
government issued health insurance for the people??? which companies are holding the life insurance policies for the bureaucrats?? think i'll go long.