Now that President Obama has finally gotten his sweeping health overhaul passed, mutual fund managers can breathe a sign of relief. Finally, there is some certainty about the changes, and most of them appear to be beneficial for health care stocks…“There does not seem to be any onerous cost control,” said Les Funtleyder, a heath care analyst at Miller Tabak, an insititutional brokerage firm and asset manager. Citing other positives for the sector, Derek Taner, the lead manager of the AIM Global Health Care fund, said, “There is just an expansion of coverage” and “not a lot of surprises.”
Health Care Overhaul May Help a Fund Sector – NYTimes.com
I think we’ll quickly see that this “reform” was really just a handout to an already out of control industry that was twice as big as it should have been (considering other countries with higher quality healthcare systems provide care for half the cost of the US)…“If we mandate that everyone contribute to a system designed at its core to maximize costs, we’ll fix the system”…And now people with real investment money see it the same way. We’ll see healthcare grow even faster than the last decade (insurance premiums increased 130% in the last decade). And insurance companies will point to this faster growth as “proof” that they should raise their premiums just as fast. And we’ll all be mandated to play our part…