Here’s how to convert a chart into a market lesson.
It tells you that if these premiums do not go up, the insurance companies cannot remain profitable. So that means their stock prices will have to go down. Another option is that they have to stop providing benefits or services they provide.
Simple. Choices have to be made under the current system; cut services or increase premiums. There are other options: change the entire healthcare system back to free market system and more competition and newer technologies.
InterAnalyst has been serving investors globally since 1990. Authoring hundreds financial articles and publications, thousands of trading charts to investors worldwide.