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Key Takeaways
- Shares of health insurers tumbled after President Donald Trump called on Congress to change the way the federal government helps Americans pay for health insurance.
- A Washington think take estimated this year health insurers received $138 billion in federal payments.
Centene (CNC), HCA Healthcare (HCA) and Molina Healthcare (MOH) are among the worst-performing stocks in the S&P 500 Monday after President Donald Trump suggested federal health care money should circumvent insurers and go directly to people.
Trump wrote on his social media platform Truth Social over the weekend that he’s recommending the Senate and House change funding covered by the Affordable Care Act (ACA), or Obamacare, so that it “BE SENT DIRECTLY TO THE PEOPLE SO THAT THEY CAN PURCHASE THEIR OWN, MUCH BETTER, HEALTHCARE, and have money left over.”
Why This News Matters
President Donald Trump’s comments are reigniting the debate over the Affordable Care Act and federal health insurance subsidies, rattling investors. His proposal to redirect federal funds to individuals would dramatically shift how the ACA marketplace operates.
The president blasted the insurance companies, calling them “money sucking” and said the U.S. should “take from the BIG, BAD Insurance Companies, give it to the people, and terminate, per Dollar spent, the worst Healthcare anywhere in the World, ObamaCare.”
The Washington think tank Committee for a Responsible Federal Budget earlier this month estimated that the subsidies paid to insurance companies this year have a gross cost to the federal government of $138 billion, up from $53 billion in 2020.
Centene shares were down more than 8% in midday trading, while Molina tumbled nearly 7% and HCA dropped 5%. Shares of United Health Group (UNH), Cigna Group (CI) and other health insurers fell as well.
