In an era in which employers increasingly are having to shift more health-care costs onto employees, IBM (NYSE: IBM) is taking the unprecedented tack of opting to pick up all expenses related to primary care for U.S.-based employees, beginning next year. In doing so, IBM is is among the first U.S. companies to cover primary care at 100%, the Armonk, N.Y.-based computing giant said Thursday.

The move means employees will not be subject to co-pays or deductibles for in-network primary care with their internist, general or family practitioner, pediatrician or primary osteopath. IBM said it was able to boost coverage due to the company's success in implementing wellness programs, an effort begun five years ago.

President Obama started an intense debate in recent months about national health care. People are concerned about how to pay for the high cost of health care in America and feel it is just too expensive. There has to be a better way!

I like oranges and I grew up in Wisconsin, but in January oranges do not grow very well in Wisconsin. I don't know why -- I am not a horticulturalist -- but maybe it's the lack of sunlight, hard frozen tundra, blowing snow or temperatures of 25 below zero. We could spend a long time pointlessly debating the actual reason.

A late-May conclusion arguing that institutional investors had started to re-commit to Cigna Corp., due to its constructive, staircase chart, virtually no breaches of the 50-day moving average, and adequate earnings outlook, has so far proved to be on-the-mark.

Hence, I'm reiterating my Buy rating for Cigna Corp. (NYSE: CI), first recommended on May 28, 2009 at a price of $21.89. If you bought CI then, you're up about 45%.

Regardless of how you feel about a public health insurance option offered by the government, interest at the policy level seems to be waning recently. If Democrats drop the idea of a public option as a component of health care reform, health insurance companies could benefit.

The way I see it, if the government starts offering health insurance as a public provider then new supply will have entered the market. According to my college Econ 101 text book, that new supply would have shifted the supply and demand curves towards lower prices and maybe lower profits.

Just when you thought it might be safe to peek your head back into the world of economic reports, it has hit the wire that American families will be shelling out an average of $16,771 this year for healthcare costs. That's a new record, up $1,162 per family.

It's a vicious cycle -- hospitals, doctors, drug companies and others are hiking their rates to fight the recession. In turn, many companies, in an attempt to cut costs, have cut back on the amount they'll pay as benefits, putting the burden on the employees.

How will President Obama's $825 billion plan to stimulate the economy work? It looks like it will create jobs for the people working on the projects. But how long will those jobs last and will they continue after the projects are over? And if there's something wrong with his plan, what would be a better alternative? I think that if these projects are investments that create revenue generating operations, they are worth doing -- especially if those revenues ultimately recoup the investment.

Here are some of the specific plan elements that I view as investments:

• Boost renewable energy supply. The plan seeks to double renewable energy generating capacity of over three years -- to power six million American homes. It would upgrade two million homes and 75% of all federal buildings to better protect against the heat and cold -- saving low-income homeowners $350 a year in utility costs and cutting government costs by $2 billion a year. It would also provide loan guarantees to boost the $100 billion in private sector investment in clean energy projects over three years.
• Upgrade 3,000 miles of transmission lines for a national electric grid to make more efficient use of energy.
• Build 1,300 waste-water projects which would provide an ongoing revenue source for cities and states and reduce the costs of cleaning up polluted water.

Readers of this space know that due to uncertainties regarding public policy at the federal level, the health care sector insurance has been avoided. But there are exceptions, and WellPoint is one.

WellPoint, Inc. (NYSE: WLP) is the U.S.'s largest health insurer.

Analysts expect WLP's revenue to increase 4-5% in 2008, driven by premium rate increases and higher enrollments. Enrollments are seen increasing about 2%, with impressive gains in Medicare and Medicaid accounts.

Meanwhile, a company exit from an unprofitable Ohio Medicaid program, and the shift to a fee-based account for Connecticut Medicaid will also help the bottom line.

Aetna Inc. (NYSE: AET) is recently down $1.72 to $48.80. The New York Attorney General is expected to announce an industry-wide investigation of healthcare insurance companies, according to Reuters.

AET March option implied volatility of 34 is above its 26-week average of 29 according Track Data, suggesting larger price fluctuations.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Wal-Mart (NYSE: WMT) wants to be your doctor -- sort of. The company plans to open hundreds of new clinics in its stores. They will be co-branded with medical groups and hospitals and some will be staffed by nurse practitioners.

"We have learned that people are willing to receive their health care from the front of a store or the back of a drugstore," Dr. John Agwunobi, a medical doctor who is a Wal-Mart senior vice president, told The New York TImes.

Several drug store chains have already gotten into the business, so Wal-Mart is not alone. Since many Wal-Mart customers do not have health insurance, the retailer may be able to take a big piece of the market with low pricing.

Wal-Mart and its partners do need to be concerned with malpractice issues. One reason medical costs are so high is large malpractice insurance rates. Some patients who sue doctors and hospitals do get large awards.

A huge company like Wal-Mart is a ready-made target for people unhappy with a poor treatment result.

Douglass McIntyre is an editor at 247wallst.com.

UnitedHealth Group Inc. (NYSE: UNH) announced that a Special Litigation Committee (SLC) reached a settlement agreement with former CEO Dr. William W. McGuire.

SLC concluded all claims against all named defendants should be dismissed. Dr. McGuire will surrender UNH stock options worth approximately $320 million, interest in retirement plan valued at approximately $91 million, and $8 million in his executive savings plan. UNH has a market cap of $72 billion. UNH over all option implied volatility of 24 is near its 26-week average of 26 according to Track Data, suggesting non-directional risks.

Daily Options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Wal-Mart (NYSE: WMT) is insuring more of its workers. It does not seem to want to advertise that fact, but it is true nonetheless. According to The New York Times, "Wal-Mart, the nation's largest private employer, provides insurance to 100,000 more workers than it did just three years ago -- and it is now easier for many to sign up for health care at Wal-Mart than at its rival Target (NYSE:TGT), whose reputation glows in comparison."

The world's largest retailer is still offering less than half of its US workers healthcare benefits. The company plans more improvements with all workers being able to pick from a group of different plans by next year.

The move does not come without some potential risk for shareholders. Wal-Mart's margins in the US are already pinched by slow same-store sales, high fuel costs, and a slowing economy. While insuring more people may be the right thing to do, over time it may not help the firm's share price.

Being a Wal-Mart worker may be getting better than being an investor.

Douglas A. McIntyre is an editor at 247wallst.com

Still wondering why almost every candidate for President has his or her own idea of a new health care plan? Obviously the public is ready. They're not crazy about the idea of paying for health insurance themselves, even if their employer gave them money to help pay for it.

That's just one of the none-too-surprising findings in this year's Health Confidence Survey, conducted biennially by the Employee Benefits Research Institute (EBRI).

Three-quarters of those surveyed (76%) valued employer-provided health care so highly that they said they would prefer employer-based health benefits to a $7,500 taxable increase in income. When asked how much income they would want if their employer asked them to give up employer-based coverage, they responded they want $12,000 in taxable income.

China Life Insurance (NYSE: LFC) implied volatility is Elevated as LFC is near a record high. LFC offers products and services, including individual life insurance, accident insurance, and health insurance in China. LFC is recently up $2.97 to $66.21. LFC over all option implied volatility of 46 is above its 26-week average of 39, according to Track Data, suggesting larger price fluctuations.

ICICI Bank (NYSE: IBN) overall implied volatility is Elevated at 47. IBN is India's second largest bank, with total assets of over $79 billion USD as of 3/31/07. IBN over all option implied volatility of 47 is above its 26-week average of 41, according to Track Data, suggesting larger price fluctuations.

Daily options update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

According to an article in today's USA Today, UnitedHealth Group (NYSE: UNH)'s United Healthcare has created a health insurance program that charges overweight smokers up to two grand more per year for health insurance. The sin premium adds a stick component to the wellness program carrot.

This idea seems like one that could be dramatically expanded, too. Tying behavior to insurance costs could be a great way to rein in our burgeoning expenses. How about:

• Doubling collision coverage cost for cell-phone drivers, lipstick appliers, and chicken-nugget dunkers?
• Eliminating coverage of hearing aids for iPod users?
• Reducing the coverage of carpal tunnel surgery for text messagers and video gamers?
• Demanding a higher premium for skin cancer coverage from frequent beach-goers?
• Refusing to cover the cost of treating high blood pressure for golfers?
• Raising the premium for allergy treatments for farmers?
• Extending the copay for dentistry for those found to chew sugar gum, tobacco, or nougat?
• Charging more for dermatology visits for those who choose to depilate "down there"?
• Increasing the cost for hair transplants for those who choose to have multiple children?

Pay to play has become an American obsession, and it's only fair that each person covers the cost of his or her indulgence, right? The concept of accepting one another's imperfections, and willingly pooling our exposures so that we all can receive help when we need it - too 20th century?

From time to time, Google Inc.'s (NASDAQ: GOOG) reminds everyone that despite all of the talk about peace, love and the sharing of information, it is just a company.

A case in point is the idiotic rantings of a low-level executive trying to kowtow to the health care industry. Writing about MIchael Moore's documentary "Sicko," Lauren Hutton Turner laments that "Moore's film portrays the industry as money and marketing driven, and fails to show healthcare's interest in patient well-being and care."

Of course, Hutton, an account planner who works with health care companies, has a solution: buy more advertising on Google. "Whatever the problem, Google can act as a platform for educating the public and promoting your message," she writes. "We help you connect your company's assets while helping users find the information they seek. "

Hutton is being vilified and mocked throughout the Internet. But even though the criticism of her is a little unfair, it raises a bigger issue about the honesty of Google's search results. It's not in Google's interest for someone searching for the term "health care costs" to see a link to Moore's documentary come out on top or even on the first two or three pages.

This reminds me of a bizarre story I heard about the Wall Street Journal and Enron. Soon after the first Enron stories appeared in the newspaper someone in the Journal's advertising department supposedly (I am not sure if it's true or not) sent the company a letter offering to do a branding campaign to combat the negative publicity being created by its own reporters.

Hutton is probably no different than thousands of other Googlers looking to get a bigger slice of the world's advertising spending. She erred in showing publicly how Google values its advertisers over its users just like every other media company. If people get some use out of Google while it makes money for its customers, it's a happy coincidence.