The Trump administration has taken an axe to the Affordable Care Act, suspending a program that was set to pay $10.4 billion to insurers for covering high-risk individuals last year. According to health insurers, this could drive up premium costs and create health care marketplace uncertainty.
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In Monday's trading, many of the major insurers followed the broader market’s upward momentum.
Analysts have weighed in on the developments. According to Seeking Alpha, Jefferies, on Monday, called it a near-term negative for Anthem but a short-term positive for Molina and Centene. For all three, over the longer-term the impact will be more volatility and uncertainty.
According to Bank of America Merrill Lynch, in terms of earnings Molina could benefit the most, with a 20.2% increase in its 2018 earnings per share, while Centene could get a 3.6% boost and Cigna would likely see a tiny benefit.