Medicaid-Exposed Insurers, Hospitals Rally After Democratic Midterm Wins
Becker's Hospital Review reports that health insurer and hospital stocks rose Nov. 4 after Democrats won majorities in both chambers of Congress in the Nov. 3 midterm elections. Centene closed up 12.6%, Molina Healthcare gained 8.9% and Elevance Health rose 4.9%, with less Medicaid-exposed insurers UnitedHealth and Cigna seeing smaller gains. Hospital operators rose more sharply, led by Community Health Systems at 16.1%, with Bernstein analyst Lance Wilkes tying the moves to expectations that a Democratic Congress will negotiate delays to Medicaid-related provisions of HR 1, restore enhanced ACA marketplace subsidies, and avoid cuts to state-directed payments, though growth in those programs is not expected to resume. Drugmakers posted smaller gains, with analysts saying Democratic committee control is unlikely to quickly change drug pricing policy but may bring hearings on the topic.