Wednesday, April 27, 2005

Bad news for insurance stocks is good news for you!

The NY Times is reporting that many analysts think it could be a bad year for the stocks of large insurance companies. Why might this be a good thing for you, the business owner or individual? The second paragraph from the bottom gives it away, that the Blues (BlueCross and BlueShield companies) will face sizable reserves that they will use to drive down prices and force the big companies to compete. For those of you specifically in Washington state, it will be interesting to see what happens as the two largest providers of small group coverage in Washington are Regence (Blue Shield) and Premera (BlueCross).