Why These Medicaid Stocks Might Surge
Last week, the U.S. District Court of Maryland on Friday posted a preliminary injunction that would stop the Trump administration from introducing changes to the Affordable Care Act's health insurance marketplace. Chances would have taken effect if the court had not intervened.
The judge sided with the plaintiffs, who argued that over 2.2 million people would lose healthcare coverage. Throughout this year and more recently, shares in Affordable Care Act marketplace operators traded sharply lower. The decision should give a boost in Centene (CNC), Molina Healthcare (MOH), Oscar Health (OSCR), CVS Health (CVS), Cigna (CVS), Elevance (ELV), and United Health (UNH).
After a brief surge, their stock price risks trending lower again. The government might look for other ways to remove coverage for Americans who do not qualify for benefits. More importantly, the district judge does not have the authority to reverse the ACA changes. It would need to involve an overruling by the Supreme Court next.
Investors may also consider adding to drug manufacturing stocks that formed an uptrend. Pfizer (PFE), Merck (MRK), Regeneron (REGN), and AbbVie (ABBV) are some of the companies to consider. The backing of the ACA would increase sales of drugs in general.
Those are some of the firms whose share price would continue to rise.
