Senate Healthcare Bill Lifts US Stocks

23 December 2009 (Last Updated December 23rd, 2009 18:30)

The US healthcare bill which passed the first crucial Senate test has helped raise healthcare shares in the stock index. The lack of government-run health insurance options in the bill has also helped raise shares, according to Reuters. Oppenheimer analyst Carl McDonald said t

The US healthcare bill which passed the first crucial Senate test has helped raise healthcare shares in the stock index.

The lack of government-run health insurance options in the bill has also helped raise shares, according to Reuters.

Oppenheimer analyst Carl McDonald said the last version of health reform issued by the Senate also helped the insurance industry.

"In particular, all versions of a government-run health plan have largely been eliminated," McDonald said.

According to the revised bill, the healthcare insurance industry will face a $2bn tax in 2011, with increases over time to $10bn in 2017.

The bill will require most Americans to have insurance by expanding the membership rolls for health insurers and by replacing a proposed government-run public insurance option with less onerous exchanges.