Despite what you’ve heard, the public option might not be off the table after all.
On Friday House Speaker Nancy Pelosi said that although details are still under discussion, “At the end of the day we will have a public option" in the House bill.”
And Pelosi went on to say the Senate might also include a public option in its final bill. As you may know, both the Senate and the House have approved multiple health reform bills that must now be molded into a final bill that can be approved by each chamber. The two bills will then have to be reconciled for final adoption.
According to a Reuters report, the public insurance option would be available in a government-sponsored marketplace for small businesses and people who do not get insurance through their employers.
What’s the trade?
The rhetoric generates uncertainty, explains Joe Terranova and as a result I think the health care space is under-invested. Personally, I'd play it with a long position in Cigna .
I have calls on Aetna , UNH and WellPoint, adds Karen Finerman..
I’d look at Medco or Express Scripts, which should benefit no matter what the outcome, adds Gary Kaminsky, if only because more people will have access to health care.