Nov. 18, 2019, 3:19 p.m. EST

Managed care stocks jump on Warren’s 2022 Medicare for All plans

Sen. Elizabeth Warren doesn’t plan to pursue Medicare for All legislation until the third year of her term.

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Cigna Corp. (CI)
  • X
    CVS Health Corp. (CVS)
  • X
    UnitedHealth Group Inc. (UNH)

or Cancel Already have a watchlist? Log In

By Jaimy Lee


Getty Images

Stocks of health care providers and health insurers are rallying Monday after Sen. Elizabeth Warren said Friday that she plans to hold off on Medicare for All legislation until the third year in her presidential term.

Shares of major commercial health plans like Cigna Corp. /zigman2/quotes/208431372/composite CI -1.81% , CVS Health Corp. /zigman2/quotes/209664499/composite CVS -1.35% and UnitedHealth Group Inc. /zigman2/quotes/210453738/composite UNH -0.88% are slightly up; however, managed care firms, including Centene Corp. /zigman2/quotes/208900023/composite CNC -2.17% , Molina Healthcare Inc. /zigman2/quotes/205492029/composite MOH -1.48%  and WellCare Health Plans Inc. /zigman2/quotes/207459018/lastsale WCG +1.35%  are reporting larger jumps in share price.

Read:What ‘Medicare for All’ would do to the health-care sector

Analysts say Warren’s delay in pursuing Medicare for All legislation until 2023 should lessen industry fears about a battle in Congress in 2021. “This should be a positive for managed care and hospital names,” Raymond James /zigman2/quotes/201697413/composite RJF -0.35%  analysts wrote in a note Friday.

SunTrust Robinson Humphrey’s David MacDonald on Monday raised price targets for nine companies. “The Medicare for All plan release provides improved clarity and likely allays some concerns,” he wrote in a note. “We continue to view the managed care companies as a key part of the health care cost solution.”

See:New benefits under Medicare Advantage could include meal delivery, air cleaners

Warren announced she instead plans to make a number of smaller changes that expand health insurance coverage in her first 100 days in office and then later focus on a more comprehensive Medicare for All bill after the 2022 midterms. The first phase of her plan includes offering Medicare for All to children and to low-income families. “No later than my third year in office, I will fight to pass legislation that would complete the transition to full Medicare for All,” Warren said.

Sen. Bernie Sanders released his Medicare for All plan in April.

Read:The share of Americans with health insurance just dropped for the first time since the Great Recession

Shares of hospital operators were mixed in morning trading. Universal Health Services Inc. /zigman2/quotes/208539347/composite UHS -0.80% and HCA Healthcare Inc. /zigman2/quotes/205934574/composite HCA -0.87% were down a little over 1% in afternoon trading, after rallying on Friday. Tenet Healthcare Corp. /zigman2/quotes/207964487/composite THC -2.35%   tacked on 0.3% after climbing 3.6% on Friday, while Community Health Systems Inc. shares /zigman2/quotes/203657360/composite CYH -1.10%  followed a 9.4% surge on Friday with a 2.9% pullback on Monday.

The SPDR Health Care Select Sector ETF /zigman2/quotes/205918244/composite XLV -0.62%  slipped 0.3% on Monday, after rising 2.1% on Friday, which was the biggest one-day gain since Jan. 4. The ETF is up 12.3% year-to-date, while the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.19%  is up 24.6% over the same time.

/zigman2/quotes/208431372/composite
US : U.S.: NYSE
$ 206.22
-3.80 -1.81%
Volume: 878,571
Nov. 25, 2020 2:58p
P/E Ratio
14.45
Dividend Yield
0.02%
Market Cap
$75.87 billion
Rev. per Employee
$2.09M
loading...
/zigman2/quotes/209664499/composite
US : U.S.: NYSE
$ 67.51
-0.92 -1.35%
Volume: 4.75M
Nov. 25, 2020 2:59p
P/E Ratio
11.14
Dividend Yield
2.96%
Market Cap
$89.57 billion
Rev. per Employee
$884,748
loading...
/zigman2/quotes/210453738/composite
US : U.S.: NYSE
$ 333.06
-2.95 -0.88%
Volume: 1.67M
Nov. 25, 2020 2:59p
P/E Ratio
19.15
Dividend Yield
1.50%
Market Cap
$318.81 billion
Rev. per Employee
$745,092
loading...
/zigman2/quotes/208900023/composite
US : U.S.: NYSE
$ 62.02
-1.38 -2.17%
Volume: 1.50M
Nov. 25, 2020 2:59p
P/E Ratio
17.26
Dividend Yield
N/A
Market Cap
$36.75 billion
Rev. per Employee
$1.32M
loading...
/zigman2/quotes/205492029/composite
US : U.S.: NYSE
$ 202.14
-3.03 -1.48%
Volume: 105,315
Nov. 25, 2020 2:55p
P/E Ratio
15.18
Dividend Yield
N/A
Market Cap
$12.17 billion
Rev. per Employee
$1.68M
loading...
/zigman2/quotes/207459018/lastsale
US : U.S.: NYSE
$ 349.92
+4.67 +1.35%
Volume: 2.06M
Jan. 23, 2020 12:00a
P/E Ratio
30.55
Dividend Yield
N/A
Market Cap
N/A
Rev. per Employee
$1.70M
loading...
/zigman2/quotes/201697413/composite
US : U.S.: NYSE
$ 93.63
-0.33 -0.35%
Volume: 213,246
Nov. 25, 2020 2:58p
P/E Ratio
16.06
Dividend Yield
1.58%
Market Cap
$12.83 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/208539347/composite
US : U.S.: NYSE
$ 132.88
-1.07 -0.80%
Volume: 205,238
Nov. 25, 2020 2:58p
P/E Ratio
13.03
Dividend Yield
0.00%
Market Cap
$11.38 billion
Rev. per Employee
$140,820
loading...
/zigman2/quotes/205934574/composite
US : U.S.: NYSE
$ 153.71
-1.35 -0.87%
Volume: 613,421
Nov. 25, 2020 2:59p
P/E Ratio
15.53
Dividend Yield
0.00%
Market Cap
$52.47 billion
Rev. per Employee
$183,343
loading...
/zigman2/quotes/207964487/composite
US : U.S.: NYSE
$ 32.77
-0.79 -2.35%
Volume: 339,214
Nov. 25, 2020 2:58p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$3.54 billion
Rev. per Employee
$162,667
loading...
/zigman2/quotes/203657360/composite
US : U.S.: NYSE
$ 8.55
-0.09 -1.10%
Volume: 842,932
Nov. 25, 2020 2:58p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$1.03 billion
Rev. per Employee
$165,125
loading...
/zigman2/quotes/205918244/composite
US : U.S.: NYSE Arca
$ 108.17
-0.67 -0.62%
Volume: 4.25M
Nov. 25, 2020 2:59p
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
3,628.49
-6.92 -0.19%
Volume: 1.60B
Nov. 25, 2020 2:59p
loading...

Jaimy Lee is a health-care reporter for MarketWatch. She is based in New York.

This Story has 0 Comments
Be the first to comment
More News In
Industries

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.