SOURCE: Rothman Research

Rothman Research

May 20, 2010 08:21 ET

Health Insurance Marching in Murky Territories

JOHANNESBURG, SOUTH AFRICA--(Marketwire - May 20, 2010) - www.rothmanresearch.com -- Is Warren Buffet's exit strategy in the healthcare insurance industry an indication that the industry is gradually entering a volatile phase? On Monday of this week, Berkshire Hathaway, billionaire Warren Buffet's firm, sold 1.3 million shares of WellPoint Inc. (NYSE: WLP) and 1.2 million shares of UnitedHealth Group Inc. (NYSE: UNH). Many industry experts believe that this tactical choice of decreasing his exposure in the health insurance stems from the fact that strict regulations could well be unleashed onto the industry's players which will limit managements' maneuver to operate profitably. The fear of seeing their premiums and profits being tapped under the healthcare overhaul has already sent Health Insurance on the lobbying paths.

*Direct & free downloadable research report on UnitedHealth Group Inc. is available by signing up now at http://www.rothmanresearch.com/article/unh/23537/May-20-2010.html

With this new twist in the health care reform saga, it would seem that another battle is about to start with companies in the health care plans industry seeking to have their say in molding the rules and regulations that will characterize premium increases. However, this can prove to be a herculean task following certain well published issues pertaining to WellPoint Inc. (the largest health plan by membership) which made the company an epicenter of President Obama's criticisms of how certain health insurance companies are still pursuing rogue policies.

*Complimentary downloadable research on WellPoint Inc. is accessible upon registration at http://www.rothmanresearch.com/article/wlp/23538/May-20-2010.html

It has started to appear that the United States is heading towards regulatory upheavals in many of its core economic sectors, and investors are looking to companies to make the right moves so as not to jeopardize their integrity. Moves like WellPoint already have investors questioning the company's policies, and a bad image during uncertain times can be a difficult mix to ponder.

*www.rothmanresearch.com is a source for investors seeking free information on the Health Care Plans industry; investors are encouraged to sign up for free at http://www.rothmanresearch.com/index.php?id=6&name=Register.

Even as Health Insurance companies continue their fight to minimize regulation impact on their profitability, a number of doubts regarding the health care law still plague both the industry and traders alike. Warren Buffet's latest move has already hinted what the next few months could hold for insurance companies in the health care sector. However, smart-money might wish to balance their trading portfolio so that they do not lose out on the long-term as the industry would rebound once all the negativities about the health reforms have been weighed and accounted for. 

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