Health insurance companies continue to experience volatility due to renewed rhetoric from President Donald Trump about the Affordable Care Act (ACA). Trump referred to the insurance companies companies as “BIG,” “BAD,” and “money sucking.” In reaction to these comments over the weekend, there was market tension in morning trading on Nov. 10 that impacted some of the biggest companies in this industry. These include Centene (CNC), Oscar Health (OSCR), and Elevance Health (ELV). The bigger companies such as UnitedHealth Group (UNH), Humana (HUM), and CVS (CVS) were also impacted.
Trump made these remarks as Congress grappled with ending the ongoing overnment shutdown – the longest in U.S. history. One key point of debate between lawmakers has been the expiration of subsidies within the ACA, informally known as Obamacare. His proposal that money be transferred to consumers from the government to bypass insurers was seen as posing potential revenue volatility to insurers that operate within the marketplace model.
