Winners and losers of Trump’s decision to halt ObamaCare payments
Senate Minority Leader Chuck Schumer said the Republican Party is responsible for problems associated with the Affordable Care Act. Hoover Institution research fellow Lanhee Chen with more.
The Trump administration has taken an axe to the Affordable Care Act, suspending a program that was set to pay $10.4 billion to insurers for covering high-risk individuals last year. According to health insurers, this could drive up premium costs and create health care marketplace uncertainty.
In Monday's trading, many of the major insurers followed the broader market’s upward momentum.
Analysts have weighed in on the developments. According to Seeking Alpha, Jefferies, on Monday, called it a near-term negative for Anthem but a short-term positive for Molina and Centene. For all three, over the longer-term the impact will be more volatility and uncertainty.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| MOH | MOLINA HEALTHCARE INC. | 294.34 | -11.66 | -3.81% |
| ANTH | ANTHERA PHARMACEUTICALS | 0.0001 | +0.00 | +0.00% |
| CNC | CENTENE CORP. | 57.45 | -1.24 | -2.11% |
According to Bank of America Merrill Lynch, in terms of earnings Molina could benefit the most, with a 20.2% increase in its 2018 earnings per share, while Centene could get a 3.6% boost and Cigna would likely see a tiny benefit.