Stocks of health care providers and health insurers are rallying Monday after Sen. Elizabeth Warren said Friday that she plans to hold off on Medicare for All legislation until the third year in her presidential term.
Shares of major commercial health plans like Cigna Corp. CI, +1.21% , CVS Health Corp. CVS, +1.09% and UnitedHealth Group Inc. UNH, +1.31% are slightly up; however, managed care firms, including Centene Corp. CNC, +3.13% , Molina Healthcare Inc. MOH, +3.69% and WellCare Health Plans Inc. WCG, +1.89% are reporting larger jumps in share price.Analysts say Warren’s delay in pursuing Medicare for All legislation until 2023 should lessen industry fears about a battle in Congress in 2021.
SunTrust Robinson Humphrey’s David MacDonald on Monday raised price targets for nine companies. “The Medicare for All plan release provides improved clarity and likely allays some concerns,” he wrote in a note. “We continue to view the managed care companies as a key part of the health care cost solution.
Shares of hospital operators were mixed in morning trading. Universal Health Services Inc. UHS, -1.74% and HCA Healthcare Inc. HCA, -0.92% were down a little over 1% in afternoon trading, after rallying on Friday. Tenet Healthcare Corp. THC, +0.82% tacked on 0.3% after climbing 3.6% on Friday, while Community Health Systems Inc. shares CYH, -2.55% followed a 9.4% surge on Friday with a 2.9% pullback on Monday.
The SPDR Health Care Select Sector ETF XLV, -0.34% slipped 0.3% on Monday, after rising 2.1% on Friday, which was the biggest one-day gain since Jan. 4. The ETF is up 12.3% year-to-date, while the S&P 500 SPX, +0.05% is up 24.6% over the same time.We Want to Hear from You Join the conversation