Health insurance stocks rally as 'Medicare for All' threat weakens

Morgan Haefner - Print  | 

Big managed care organizations like UnitedHealth Group and Humana saw their shares rise on new developments that may diminish the chance for "Medicare for All" being implemented in the near future, according to Barron's.

Uncertainty surrounding Medicare for All has negatively affected healthcare stocks this year. Medicare for All, which would ultimately eliminate private health insurance, has been supported by Democratic presidential candidates Sens. Elizabeth Warren, D-Mass., and Bernie Sanders, I-Vt.

But new details of Ms. Warren's Medicare for All plan, specifically that she won't attempt to pass full Medicare for All legislation until her third year in office, weakened some of the immediate threats of Medicare for All for insurers. Additionally, a new poll found Democratic presidential candidate Pete Buttigieg, the Mayor of South Bend, Ind., is rising in popularity among Iowa caucus voters. Mr. Buttigieg doesn't support Medicare for All, but does want to expand Medicare.

UnitedHealth, Cigna and Humana all rose after the weekend's news. Anthem remained flat.

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