XLV•Molina Healthcare rose 6.4%, Centene gained 4.5%, HCA Healthcare climbed 3.8% and Universal Health Services rose 2.2% premarket after TD Cowen said hospitals and Medicaid-focused insurers face less policy risk following the Democratic sweep of Congress.
TD Cowen expects affordability and industry accountability to dominate the healthcare agenda, creating high headline risk across much of the sector. It said sweeping reforms remain unlikely with President Donald Trump in the White House, though Democrats could use debt-ceiling negotiations to seek restored Obamacare subsidies and reversed Medicaid payment cuts. Citi expects greater scrutiny of drug pricing and federal health agencies, but sees limited near-term impact on drugmakers and expects existing pricing agreements with the Trump administration to remain intact.
