Though there has been much uncertainty regarding the fate of healthcare policy since the election of President Donald Trump, healthcare stocks have been outperforming the market as a whole since the election, according to Bloomberg.
Passage of the AHCA could mean reduced insurance coverage for a number of procedures and treatments, which would cut off a major source of funding for healthcare manufacturers. The profit margins hospitals see for treating patients with private insurance are often much higher than for those with Medicare or Medicaid, as private insurers have much higher reimbursement rates.
Even with the potential ramifications of ACA repeal, healthcare investors have kept faith in the profitability of the industry. It remains to be seen if that trend will continue once the details of the Senate's version of the AHCA are public.
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