Health care

Health Care Stocks 2010

Article by Steve Christ

Two Ways to Win in the Health Care Battle

Ted Kennedy must be rolling over in his grave. Holy utopia, foiled again.

A mere five months after being buried, his “cause of a lifetime” now hangs in the balance by the power of his very own seat – which, by most accounts, was entirely unimaginable just a few weeks ago.

Yet in the aftermath of Tuesday’s election, the improbable became reality as Scott Brown bolted from a 30-point deficit to defeat Martha Coakley, a candidate most observers considered a shoo-in.

Instead, it was Brown who won the day – and tapped into voter outrage with the “business as usual” bit that has done nothing but bury us.

Armed with the specter of an out-of-control government, Kennedy’s old seat turned out to be nothing more than easy pickings for the upstart challenger.

But that’s mood these days as more and more people begin to realize just how badly they are being screwed by the political machine south on the Potomac.

You see, while at times our right to vote can seem irrelevant, when done in force it can change the political landscape in a nanosecond.

Right or left, that has given incumbents plenty to worry about as they scurry to save their own smug butts from a similar fate.

The tide is rising and it’s not exactly in their favor.

That has left the same health care bill for which Kennedy fought twisting in the wind, since Brown has vowed to vote against the package and the Democrats may not be unable to shut down efforts to delay its passage.

Health Care Stocks for 2010

Those are the political realities that help make health care stocks a good bet in 2010; it’s becoming more apparent that the health care overhaul is now perched on the slippery slope.

Because while the health care business would have gained new revenue from the added number of customers, the bill being considered by Congress also carries with it the risk of higher fees, increased regulation, and narrower profit margins.

And needless to say, all these factors are murder on bottom lines – especially when the government is involved. After all, Uncle Sam’s ham-handed approach to practically everything is rarely business friendly…

So it wasn’t really all that surprising when health care stocks went on a tear on Tuesday as Brown prepared his victory speech.

In fact, the S& P 500 Managed Health Care Index – which tracks the top six insurers – gained 3.7 percent, almost tripling the S& P 500′s gain on the day. What’s more, the S&P 500 Pharmaceuticals Index also rose 2.2 percent on the news.

But let’s face it; even without the big win by Scott Brown on Tuesday night, there are 78 million other reasons to invest in health care stocks.

Pitch forks and torches aside, when you add the prospect of an army of graying baby boomers into the mix, the long-term growth outlook for health care stocks is practically a no-brainer. Which is one of the reasons we especially like biotech stocks as the top sector of the next decade – especially those involved in regenerative medicine.

In fact, according to recent projections by the federal government, consumers and taxpayers will spend more than trillion on health care by 2017 as our population continues to age.

The result is that health care spending will increase by 6.7% annually over the next nine years, outpacing inflation by nearly three times, according to the forecast.

In fact, it is estimated that by 2017 health care spending will cost an estimated ,101 per person, versus today’s average cost of ,026 per person.

Better yet, the health care share of gross domestic product (GDP) is expected to increase throughout the period, reaching 19.5 percent of GDP by 2017.

2 Health Care Stocks to Add to Your Radar

That, needless to say, will provide the type of environment that will keep health care companies growing – no matter who is in office.

Considering these factors, here are two ways to play these trends, while earning a nice dividend along the way:

* Go Long Johnson & Johnson (NYSE: JNJ): This is one great company with the demographic tide completely on its side. Moreover, their dividend history is as solid as it gets and is growing. Currently the dividend yield is 3.0%. Warren Buffett, by the way, is among its biggest holders. Buy this one on a pullback.

* Go Long Abbott Laboratories (NYSE: ABT): Much like JNJ, Abbott Labs is a diversified health care giant with the wind at its back. On top of that, the 120-year-old company pays a 2.90% dividend and is expected to increase its sales 8% this year to .1 billion. This is another one to add on a pullback.

So whether you are right, left, or somewhere in between, that shouldn’t stop you from adding diversified health care stocks to your portfolio… long-term, these stocks are certain winners. Besides, the markets always tend do well when gridlock arrives in D.C.

As for me, I love it when the voters rise up and shake politicians by the collar. After all, we’re not just citizens, but heirs to the revolution.

Shaking things up once in awhile is our birthright.

Your bargain hunting analyst,

Steve Christ

Investment Director, The Wealth Advisory

This article was originally found here: Health Care Stocks 2010

More Health Care Articles

Curves – leader in women’s fitness reflects on 2010 ? Part 2

2011 is here and as we ring in the New Year, we are also looking back at the best of 2010.

Today, we write Curves success stories that happened during the month of May thru Dec 2010.

If getting in shape is part of your New Year’s resolution… you might want to give Curves a try! Curves, provides a safe, efficient and effective workout for women of all ages and fitness levels in an environment that’s comfortable and welcoming.

1)

More than 700 Curves teams collected over .1 million in 2009. “In communities nationwide, Curves clubs have established themselves as dedicated volunteers in our mission to save lives and create a world with less cancer and more birthdays,” said American Cancer Society CEO Dr. John R. Seffrin.
Read more at http://news.curves.com/press+releases/community+relations/relay+for+life+2010.htm

2)

It’s hard to imagine what 7 million pounds look like, but let’s give it a shot. That’s how much food was collected and donated to local food pantries by Curves clubs in the spring of 2010. And some of it was delivered in the same vehicles in which it was originally purchased.

Read more at http://news.curves.com/press+releases/community+relations/annual+food+drive+2010.htm

3)

Curves and TNT joined forces for a new, summer-long promotion that introduced the strong characters on TNT while also encouraging women to hit the gym. Through the Strong Woman Challenge, women were empowered to identify their inner strengths, join one of four teams inspired by TNT’s lineup of female characters and commit to work out three times a week for six weeks at Curves.
Read more at http://news.curves.com/press+releases/tnt+strong+woman+challenge+2010.htm

4)

Since 2007, Curves clubs have raised more than 5,000 for the Canadian Cancer Society by participating in Relay For Life and through Breast Cancer Awareness Month events.

“Curves’ clubs and their members clearly demonstrated their commitment to the health and well-being of Canadian women by participating in Relay For Life and Breast Cancer Awareness Month events,” says Lesley Ring, National Director, Corporate Development, Canadian Cancer Society. “We are very grateful for their support and would like to extend our heartfelt thanks to all of the Curves clubs and their members across Canada.”

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Read more at http://news.curves.com/press+releases/community+relations/canadian+cancer+society+2010.htm

5)

Annie Redelinghuys of Gravesend, UK, was honored for her impact on local women. Curves International congratulates club owner Annie Redelinghuys, winner of the prestigious Future of Flame Award 2010. The annual Flame Awards, established by the Fitness Industry Association, recognizes individuals who have shown remarkable dedication and commitment to the fitness industry. Read more at http://news.curves.com/press+releases/wellness/future+of+flame+award+2010.htm

6)

The National Strength and Conditioning Association (NSCA) awarded Dr. Richard Kreider, head of the Department of Health & Kinesiology at Texas A&M University, with the 2010 NSCA Nutrition Research Achievement Award. He also directs the Exercise & Sport Nutrition Lab (ESNL), which has conducted numerous and ongoing studies of the Curves fitness and weight loss programs since 2002.

Read more at http://news.curves.com/press+releases/national+strength+and+conditioning+association+nutrition+research+award.htm

7)

Curves staff and members, a Home Depot store, and firefighters from northwest Amarillo surprised a mom and her grown daughter (who has Down syndrome) when they showed up over the July 4 holiday weekend to install two window air conditioner units in their previously uncooled home.

Read more at http://news.curves.com/press+releases/community+relations/mom+and+daughter+get+help+from+curves.htm

Maine woman transforms her body and her health at Curves. “She’s lost 78 pounds since March, 48 inches and 59 pounds of body fat,” Catherine Perry, co-owner of Curves in Belfast.
Read more at http://news.curves.com/press+releases/woman+drops+80+pounds+in+5+months.htm

9)

About 1,200 of the 5,235 people who enrolled at Curves went on to buy an annual membership, said Jennie Geise, director of wellness programs for Curves International and owner of a Curves business in Avon Lake.
Read more at http://news.curves.com/press+releases/wellness/gofit+cleveland+clinic+results+2010.htm

10)

Curves has the led the way for the second year running as part of a Government campaign to increase the public’s awareness of the benefits of regular physical activity and leading an active lifestyle.
Read more at http://news.curves.com/press+releases/around+the+world/fia+more+active+4+life+2010.htm

11)

Canadian American Business Council awards Curves International and Mytrak Health System the 2010 Business Achievement Award for cross-border collaboration on personalized fitness solutions. Read more at http://news.curves.com/press+releases/cabc+2010+business+achievement+award+curvessmart.htm

12)

Curves took a leadership role in the fight against breast cancer during this month.As part of Curves’ mission to strengthen women and in recognition of Breast Cancer Awareness Month, participating Curves clubs in the U.S. waives joining fee for new members who show proof of a recent mammogram or make a donation to the American Cancer Society
Read more at http://news.curves.com/press+releases/community+relations/breast+cancer+awareness+2010.htm

13)

Henry Ford, Thomas Edison, Walt Disney, Colonel Sanders, J.K. Rowling, Charles Shultz and Gary Heavin make the list. Read more at http://news.curves.com/press+releases/newsweek+most+successful+almost+failures+2010.htm

14)

Curves founder Diane Heavin named to star-studded list of women entrepreneurs. Read more at http://news.curves.com/executive+biographies/self+made+magazine+50+women+who+inspire+us+2010.htm

Related Fitness News Articles

Week of March 15, 2010

The White House last week continued to rail against rising health insurance premiums to help build popular support for his health care reform package. But the effort to focus the blame for rising costs on insurers was questioned, in particular, by state insurance experts and economists quoted in a New York Times story last week. Insurance commissioners said that trying to hold down premiums before costs were under control would be very risky. This approach could mean solvency issues in some cases, they told the Times. To help educate Americans about the true drivers of rising health care costs, America’s Health Insurance Plans, the industry trade association, last week launched a new national ad campaign. The ad demonstrates that health insurance company costs represent a small slice of the overall health care cost pie.

Federal

With a cadre of staff operatives searching for the right health insurance reform provisions among those previously discarded from the House, Senate and the President’s proposals, Democratic leadership has been relentlessly pursuing every possible pathway to pass a final bill. The expected process would have: 1) the House pass the Senate-adopted reform bill (which most House members hate), 2) the House passing a bill to “fix” all the things it hates using a reconciliation legislative vehicle, followed by 3) the Senate passing the very same reconciliation bill — requiring only 51 votes in the Senate. The House Budget and Rules Committees are expected to start the review, hearing and mark-up process of the reconciliation bill this week. The Senate commitment to using reconciliation was made official in a scathing letter from Leader Harry Reid to the Minority Leader. Along the way the two Chambers will need to see the latest CBO “scores” on the bill before voting, and 216 House Democrats will have to resolve policy disagreements over abortion, federal health insurance rate review and authority, and other substantive issues. Additionally, the House will have to trust that the Senate can pass the reconciliation measure without changing one comma. Partisanship has blossomed into open hostility over health reform. Whether Congress can overcome these policy, process and political mine fields remains as murky as ever, but Democrats have chosen to try and will push for resolution by the Easter recess.

The Senate has passed Jobs Bill II and shipped it off to the House, where passage is not certain. Within the bill are two health-related items of note. First, the COBRA eligibility and subsidy program will be extended to the end of 2010. (These provisions are set to expire at the end of March.) Second, the bill contains a suspension until September 30, 2010 of the cut to physician Medicare reimbursements for the current calendar year. (This provision is also set to expire at the end of March.) Aetna urged Congress to apply the “doc fix” to next year’s reimbursement as well, since insurers’ Medicare rates are based on what doctors are paid, but in the end Congress failed to make this change. Aetna and the industry will continue to find ways both to establish a more lasting, if not permanent, doc fix and to devise a legislative solution to the disconnect between doctor reimbursement and Medicare Advantage rates for 2011 and beyond.

States

ARIZONA: Budget issues remain front and center as the governor and Republican leadership proposed a plan they hope will close the $700 million deficit this year and reduce the anticipated $2.6 billion deficit in 2011. Righting the state’s fiscal ship has become a very partisan exercise, with the Republicans supporting reductions in Medicaid and KidsCare, and the elimination of full-day kindergarten. As the special session on the budget is running concurrently with the regular session, no other bill hearings were held. The oral chemotherapy parity bill may be dead for this year as proponents did not meet the deadline for submitting amendatory language.

CALIFORNIA: The Assembly Accountability and Administrative Review Committee chaired by Assemblyman Hector De La Torre held a hearing last week to examine how the Department of Managed Health Care (DMHC) and the Department of Insurance (CDI) has handled issues surrounding the rescission of policies in the individual market. According to a report prepared for the committee by Bryan Liang, director of the Institute of Health Law Studies at the California Western School of Law, fewer than 300 of 6,000 former policyholders are participating in health insurers’ agreements to settle such cases. Republican committee members were highly critical of this witness, while De La Torre was critical of the Departments. The DMHC reported that since their settlements were completed there have only been nine rescissions over the past two years, proof that the DMHC and the health plans have revamped their processes for rescission and have worked to address the problem.

COLORADO: A bill mandating maternity and contraceptive coverage in individual policies continues to receive significant attention in the Senate. The most recent amendment proposes requiring maternity coverage in at least three of the plans marketed by an insurer. It would also allow a current member of a plan without maternity coverage to switch to a plan with maternity coverage from the same carrier during the first trimester. The other major bill would require that second level appeals be performed by physicians who are actively involved in clinical practice. This measure is counterintuitive in the current economy, since it would result in outsourcing appeals and drive up costs for plan sponsors and their employees.

CONNECTICUT: A proposal that would require health insurance plans to cover oral chemotherapy in the same way that intravenous chemotherapy is covered made it through the legislature’s Insurance and Real Estate Committee last week. Currently, many health plans treat the two kinds of cancer treatments differently. Chemotherapy treatments that come in pill form are often categorized as prescription drug benefits that can require patients to pay a larger share of the cost. Cancer patients, doctors and patient advocates spoke in favor of the bill, while insurers and the Connecticut Business and Industry Association opposed it, arguing that it would put a mandate on health plans that could raise costs and make it more difficult for employers to afford insurance.

GEORGIA: A bill restricting the use of rescissions in individual health insurance policies passed a Senate committee last week. Aetna continues to work with its trade organizations to educate legislators about the adverse effect of this type of legislation. Discussions also continue regarding legislation affecting the use of rental networks.

KANSAS: Roughly half way through the legislative session, several health care bills are still moving through the process. On the regulatory front, the Insurance Department has proposed a regulation that would mandate coverage of routine patient care costs while the insured is enrolled in a cancer clinical trial – a mandate that was rejected by the legislature in 2008. A hearing will be held on April 20, and Aetna will have an opportunity to present testimony on this issue. Bills still alive include mandates for autism and orally administered chemotherapy, legislation prohibiting dental contracts that require the dentist to follow a fee schedule for non-covered services, and a ban on “most favored nation” clauses by some insurers. Another bill would allow small employers to create individual HRAs to fund premium payments on individual policies, require administering insurers to offer employees the option of receiving health insurance coverage through a high-deductible health plan with an HSA, and requiring insurers who offer small group health plans to offer high-deductible health plans with HSAs, while authorizing tax deductions for health insurance premiums for individual insurance policies. Separate legislation would amend the definition of “eligible employee” to include part-time workers (currently less than 30 hours per week). Pending legislation concerning hospital charges would prohibit charging private-pay patients more than 25 percent of what the hospital’s highest volume private payer would pay for the same goods or services. Legislation that died includes a telemedicine mandate and creation of a health care insurance database for employers.

KENTUCKY: Health issues that are being hotly debated by the legislature right now include an autism mandate, a dental bill that would not allow insurers to hold dentists, optometrists or ophthalmologists to a fee schedule for non-covered services, and a bill setting a reimbursement floor for chiropractic services. The chiropractic services proposal would allow chiropractors to bill, and would require insurers to reimburse, an evaluation and management (E&M) CPT code on each and every visit. In addition to billing for follow-up services for manipulations and other therapies, the chiropractor would be allowed to submit, and the insurer required to pay, for another E&M code on each and every visit. The legislation would also add a new mandated benefit to the Kentucky statutes. Currently, reimbursement for chiropractor visits is required only if the chiropractor performs a service already covered by the health benefit plan. Under the proposal, any service within the scope of practice of a chiropractor that is billed would become a mandated benefit. Finally, the bill would require health benefit plans to provide reimbursement without the chiropractor having to provide any documentation that the services were medically necessary. Each of these bills has, or is expected to, pass at least one chamber.

SOUTH DAKOTA: Several important legislative deadlines are approaching, resulting in a flurry of activity. Bills or resolutions not passed by the second chamber by March 9 died. But the Governor has already signed a bill that amends the premium rate-setting procedure for the high-risk pool so that rates for a given classification are 150 percent of the average actively marketed premium. The pool will have to offer three or more plan designs, remove coverage requirements for the plans (such as disease management) and remove set cost-sharing values. The bill was signed by the Governor on March 1 and will become effective on July 1, 2010. The Governor has also signed a bill prohibiting rating based on injuries caused by domestic violence and legislation requiring refunds of premiums for partial months, in the case of mid-month cancellations. Both chambers have passed legislation prohibiting contract language requiring dentists to accept a fee schedule for non-covered services, and the bill awaits the Governor’s signature. Finally, the legislature passed a resolution opposing the federal health care reform proposals passed in the U.S. Senate and House.