UNH UnitedHealth Group Inc

By Gerard Baker 

Good morning,

Unhealthy Monopoly

Nearly a third of U.S. counties look likely to have just a single insurer offering health plans on the Affordable Care Act's exchanges next year, an industry retreat that adds to the manifold challenges facing the law. A new study, by the nonpartisan Kaiser Family Foundation, suggests there could be just one option for coverage in 31% of counties in 2017, and there might be only two in another 31%. Companies including UnitedHealth, Humana and Aetna have cited their losses in withdrawing from ACA marketplaces, as have smaller insurers. Those that remain are in some cases seeking sharp premium increases for next year, a demand made much easier when there is no competition. And at least one county is at risk of having no insurers offering marketplace plans next year, a problem especially for lower-income Americans who are generally required to buy ACA plans to qualify for federal subsidies.

Rush for Cash

A flood of share debuts is expected to invigorate the listless market for initial public offerings after the Labor Day holiday, but the revival might be short-lived. Companies in a wide variety of U.S. industries plan to go public after the long weekend, and the level of new issuance should resemble what would normally be expected given record stock prices and historically low volatility. But the window for offerings is expected to shut about six weeks later amid political uncertainty ahead of the presidential election. One of the largest expected IPOs is Valvoline, an engine and automotive-maintenance business that is being spun off from Ashland, and another closely watched deal is Nutanix, a Silicon Valley software company that would be one of the few billion-dollar startups to debut this year. Still, 2016 will likely go down as a brutal year for new issuance overall.

Power Surge

A startling energy bonanza has gone almost unnoticed in Texas: the rise of renewables. The Lone Star state has added more wind-based generating capacity than any other, with wind turbines accounting for 16% of electrical generating capacity as of April, and is anticipating a huge surge in solar power. We report that at a time when debate is raging between political parties over climate change, and critics charge that "green energy" is little more than a government creation, Texas has taken an approach that works within the state's free-market-based electricity system. And state officials say wind and solar are almost certain to play a significant and growing role in the state's energy future even when federal subsidies decline in coming years.

The Electric Age

Mass adoption of electric vehicles is coming, and much sooner than most people realize, writes our Personal Technology columnist Christopher Mims. Electric cars are gadgets, and technological change in gadgets is rapid. A typical electric vehicle today costs $30,000 and will go about 100 miles on a charge, if that. Within a year, you'll be able to get double that range for just a little more money. Tesla, promising its $35,000 Model 3 vehicle, is the standard-bearer, but it is hardly alone. Competition among electric vehicles and plug-in hybrids will be intense, which will drive down prices. In the short run, many cars will be plug-in hybrids, with both electric motors and gasoline engines. Meanwhile, the proliferation of charging stations, especially at businesses and workplaces, will entice demand.

--Compiled by Margaret Rawson

(END) Dow Jones Newswires

August 29, 2016 08:17 ET (12:17 GMT)

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