I noted last month how the health insurance companies rallied on the day after President Obama's big health care speech to congress. At the time, I thought that this pointed towards the fact that these companies had the Blue Dog democrats so firmly in their pockets that any health care reform legislation would leave their profits untouched.
I found it interesting that these same companies reacted negatively to the news that the Congressional Budget Office had scored the Baucus bill much more favorably than reform opponents might have hoped, which should make the insurers happy because it does not contain a public option. In fact, they have been under performing the market for the last month.
HUM 35.91 -1.99 (5.25%)
WLP 44.72 -2.94 (6.17%)
UNH 24.16 - .89 (3.55%)
Perhaps this means that the insurers are no longer sure that the final bill is going to be the windfall that they had hoped for. With momentum on the side of the progressives, maybe Blue Dogs are going to have to accept a meaningful public option.