I just bought a few of these, although still getting a feel for them. First glance, they look like a "perfect" stock for me, so still trying to figure out what I've missed. Wondering how much of an effect the removal of the means test on rebates is likely to have? Interested in any comments.
Clip from the Herald Sun:
"AFTER numerous attempts, it seems the Gillard Government will finally gets its means test on the private health insurance rebate through Parliament, courtesy of a deal with the Greens.
While those on higher incomes will lose some or all of the government subsidy, the absence of that carrot will be replaced by the stick of a 1.5 per cent Medicare levy surcharge.
Faced with a choice of paying more tax for no return or paying a bit more for private health insurance, the latter equation should still win, despite a claimed saving of $2.4 billion.
All of which leads to a buy recommendation on the only listed player which is also growing faster than the market, NIB Holdings.
"
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