Health Insurers On The Mend đź’Š

by | 12 Jul, 2019

Health Insurers On The Mend

Donald Trump, the epitome of “careful analysis and thorough consideration” according to his White House spokesman, just brought the stock market’s health insurers back to life. This is some story!

It all started when Trump made a campaign promise to end drug “rebates” and bring medical bills down. When you fall sick as an American, all the doctors, drugs, and drips are there for you, but to access them, you need to pay a monthly fee to a health insurer. Examples like UnitedHealth, Anthem, and Cigna, are some of the stock market’s biggest fish! They like to flex their bargaining power, ransacking pharmaceutical companies for discounts on drugs. Good for their profits, and whomever else the savings are passed down to. Bad for pharma. Confused? Don’t worry! The drug pricing system is the only thing more complicated than algebra, religion, and the rules of cricket combined!

The point is, Trump wanted to appease his voters by having the everyday Joe feel those discounts. The idea only fell through once he realized lower overall medical bills were possible if the savings were shared out by the insurer and not concentrated on drug prices alone. So, for example, if the monthly fee to an insurer was also lowered. As commander in chief, this is something he can command for seniors’ healthcare, so he’s pulled back. 

The consequences for investors are night and day. Fearsome insurer predators in the market were in great health yesterday as this news came out, Cigna even breaking double-digit gains for a short period! However, some pharma stocks lower down the food chain haven’t responded so well. They’ll still be picked off by insurers over the negotiating table, so send those picks straight to the ER!

All emails include an unsubscribe link. You can opt-out at any time. ​See our privacy policy.

Download on the App Store           Download on Google Play

ALL RIGHTS RESERVED © INVSTR LTD. 2018

Risk Disclosure:

Invstr is a technology platform, not a registered broker-dealer or investment adviser. Invstr does not offer its own recommendations of any security or provide its own research to any user regarding any security transaction or order.

Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.

Brokerage services of US-traded securities, including fractional trading, are provided to Invstr users by DriveWealth, LLC a registered broker-dealer and member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. 

DriveWealth provides no tax, legal, or investment advice of any kind, nor does DriveWealth give advice or offer opinions with respect to the nature, potential value, or suitability of any securities transaction or investment strategy. DriveWealth acts as the clearing firm for securities transactions entered on the Invstr mobile platform. DriveWealth is not affiliated with Invstr. Invstr does not participate in DriveWealth’s decision-making.

There is no minimum initial deposit required to open an investing account with DriveWealth. Expenses and Fees associated with the DriveWealth platform in conjunction with Beanstox includes either a monthly membership fee of $4.99 with a commission charge of $0.01 per share* or, in the event the membership fee is not paid, a commission charge of $0.0125 per share applies, subject to a minimum of $2.99 per transaction. There are no monthly minimum fees, or required ongoing minimum account balance. For non-resident aliens, there is a one-time tax verification fee of $5.00 (representing Form W-8BEN pass-through processing cost). View a full list of our fees at http://bit.ly/DWFees

The monthly subscription charge is four dollars and ninety-nine cents (US$4.99) per month plus one cent (US$0.01) per share traded (as examples, for a Transaction of 0.90 shares, the per share traded charge is one cent (US$0.01), and for a Transaction of 1.6 shares, the per share traded charge would be two cents ($0.02), and the quarterly subscription charge is fourteen dollars and ninety-nine cents (US$14.97) every 3 months plus one cent (US$0.01) per share traded. The monthly and quarterly subscription charges may be greater or less depending on additional services offered by a DriveWealth partners as part of the subscription model offering, or based on any subsidies provided by a DriveWealth partner as part of the subscription model offering. For non-resident aliens, there is a one-time tax verification fee of $5.00 (representing Form W-8BEN pass-through processing cost).View a full list of our fees at http://bit.ly/DWFees

This communication is not an offer or solicitation to purchase or sell securities. Investing in securities carries risk, including the loss of principal. Past performance is not indicative of future returns, which may vary. Online trading has inherent risk due to system response and access times that may be affected by various factors, including but not limited to market conditions and system performance. An investor should understand such facts before trading. The risks associated with investing in international securities, including US-listed ADRs and ETFs that contain non-US securities include, among others, country/political risk relating to the government in the home country; exchange rate risk if the country's currency is devalued; and inflationary/purchasing power risks if the currency of the home country becomes less valuable as the general level of prices for goods and services rises. Before investing in an ETF, an investor should consider the investment objectives, risks, charges, and expense of the investment company carefully. ETF prospectuses are accessible within the mobile application via a link under each company’s “Description.”

A fractional share is a share of equity ownership that is less than one full share. Fractional share investing has certain limitations and restrictions that investors should understand prior to purchasing fractional shares: ownership of less than one full share does not give the fractional share owner the right to vote on company matters; fractional shares are non-transferrable, meaning they cannot be transferred to another brokerage firm; and fractional share orders will be accepted as market orders only. For more information and details on fractional shares, and any associated limitations or restrictions please visit: https://drivewealth.com/fractional-shares-disclosure

Share This