Tuesday was a good day for health insurance stocks.

Posted by Nolan Miller on Jan 20, 2010

Filed Under (Finance, Health Care)

Following up on a post from last month on the public option and health insurer stock prices, here’s a chart of the price of CIGNA, Aetna, WellPoint, Coventry Health, Humana and United Health (along with the DJIA and Nasdaq Composite Index) from Friday until now.   Due to the Martin Luther King Holiday there was no trading on Monday, which means that Tuesday morning was the market’s first chance to react to the series of reports over the weekend that Democrat Martha Coakley’s bid to take over Ted Kennedy’s seat in the Massachusetts special election on Tuesday appeared to be in trouble.  In fact, in the Tuesday special election Coakley was beaten by Republican Scott Brown who campaigned on a vow to oppose health care reform.  Due to the fact that Brown’s victory will result in only 59 Senators in the Democratic camp, preventing them from defeating Republican filibuster tactics, the media has speculated that Brown’s victory will spell the end of health reform.

tuesday

(Source: Google Finance.  Click here to make your own graph.  The original idea came from the Huffington Post, here.)

The impact on stock prices is striking.  See the two flat curves hovering around zero?  They are the DJIA and Nasdaq Composite Index.  The other lines (the ones that jumped up Tuesday morning) are the major insurers CIGNA, Aetna, WellPoint, Coventry Health, Humana and United Health.  As to what this means for the prospects of health reform (and what health reform means for insurers), I think the graph speaks for itself.

By the way, Coakley, Brown and their families kept robo-calling me over the weekend despite the fact that I don’t live in Massachusetts anymore.  I hope they figure that out before this seat comes up again in 2012!