Some very significant recent development seem to hint that there are good chances that the Obama Administration's much hyped and anticipated healthcare reform bill might just collapse, something which would give health insurers much reason to celebrate. With the new legislation, they were under the threat that much of their business would be remade. Also, there was a possibility to facing some strict and "burdensome" Government regulations.

The thing which would have hurt insurers the most, however, was a significant cut in profits from selling health cover to individuals and small businesses.

In the recent trading session, some insurance stocks managed to rise on the expectation that the Massachusetts Senate vote might have derailed the Democrats’ health overhaul.

“In the longer term, reform would have been better for them”, said Les Funtleyder, the health care strategist for Miller Tabak & Company, a New York investment firm, while sharing that insurance stocks have good chances of rising in the short-term, mainly on the back of investors expressing their delight over the possible derailment of the healthcare bill.