Investing.com -- The upcoming US presidential election is set to influence the health care sector, with different implications depending on the outcome, according to analysts from Piper Sandler.
Piper Sandler analysts said a Republican victory could see the enhanced ACA subsidies, enacted in 2021 and renewed in the IRA, partially or fully rolled back. In contrast, a Democratic sweep could result in Medicare Advantage cuts, which are more likely under Harris. While MA plans have broad support, regulatory and legislative risks for plan reimbursement rates could increase under a Democratic administration, said Piper Sandler.The drug industry is also at risk if Democrats gain control, with the potential for more drugs being subjected to price controls and caps on out-of-pocket expenses extended to the private sector.
Conversely, Trump “ Trump, but he won’t roll back the existing drug pricing provisions from the IRA,” adds the firm.