Medicare for All Act clips managed care and provider stocks for a second day
Shares of managed care and provider companies slumped for a second-straight session Thursday, in the wake of the introduction of the Medicare-for-All Act to Congress on Wednesday. The bill, introduced by Reps. Pramila Jayapal of Washington, Debbie Dingell of Michigan and others looks for a quick 2-year transition out of employer-sponsored coverage into single-payor Medicare run by the government. Analyst Gary Taylor at J.P. Morgan said he doesn't expect a quick snap-back rally in the managed care and provider stocks this week, but doesn't believe they could rally off lows by summer. He then expects that rally to fade into the second half of the year, as Democratic Presidential debates begin in the fall. Shares of UnitedHealth Group Inc. lost 3% to pace the Dow Jones Industrial Average's decliners, after losing 4.9% on Wednesday; Cigna Corp. sank 3.4%, after falling 4.0% on Wednesday; Humana Inc. shed 1.0% after dropping 4.8% the day before; WellCare Health Plans Inc. slid 3.3% after giving up 3.9% Wednesday; and Anthem Inc. declined 1.8% after losing 3.6% on Wednesday. In comparison, the Dow slipped 0.2% after easing 0.3% the day before.
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