US election results' impact can vary among health insurers, says Raymond James

Tenet Healthcare

08/07/2024 12:51

** Shares of U.S. health insurers could swing either ways
after the 2024 U.S. election, depending on who wins, unlike
previously when they would collectively outperform the market in
the first year after results, says brokerage Raymond James
    ** A win for Republican candidate Donald Trump may aid
shares of health insurers like UnitedHealth  UNH.N  and Humana
 HUM.N  that offer Medicare Advantage plans for older adults but
hurt those that provide Medicaid for low-income people or
companies for insurance under Affordable Care Act (ACA) -
brokerage
    ** The inverse is likely if U.S. President Joe Biden wins,
but insurers for ACA plans, colloquially called 'Obamacare',
could still face challenges unless Democrats also sweep the
Senate and House - Raymond James
    ** Healthcare providers like HCA Healthcare  HCA.N  and
Tenet  THC.N  could benefit from Biden's win and especially if
Democrats sweep the Senate as their policies may reduce the
uninsured population - brokerage
    ** Medical technology and lifescience tools are "safe space"
from election volatility, except if tax increases, but there
could be collateral impact from policies that affect others -
brokerage
    ** Up to Friday's close, S&P 500 Health Care Sector index
 .SPXHC  up ~6% YTD, vs a ~17% increase in S&P 500 index  .SPX 
during the period    

 (Reporting by Leroy Leo in Bengaluru)
 ((Leroy.Dsouza@thomsonreuters.com ; https://twitter.com/LeroyLeo7;))