Election results naming Donald Trump as the next President of the United States and Hillary as the loser has pushed healthcare stocks higher Wednesday morning. Trump plans to “repeal and replace” the Affordable Care Act, this vague statement has health insurers uncertain.
Democrat Presidential nominee Hillary Clinton has been critical of drug companies and was going to pursue sector regulation if elected. Repealing the affordable care act would leave over 20 million people without health insurance, and end provisions such as free birth control and youths’ coverage on their parents’ health insurance plans to age 26.
Although healthcare stocks rise on Hillary’s loss on the presidency, there is no solid idea of what Trump has in store for health care. “Trump’s candidacy raised more questions about his healthcare proposals than it provided answers,” said a PwC report. “These economic uncertainties place significant cost pressures on industry stakeholders.”
A Height Securities report on Wednesday states, “The burden of governance means that Republicans must replace the ACA with something as it is political suicide to kick 20 million Americans…to the proverbial curb.”
“We think the message of this election is that America demands stronger economic growth. A Republican Congress and president is likely to reduce regulation, cut corporate taxes just enough to be globally competitive and bring cash offshore home,” David Bianco, a Deutsche Bank strategist wrote in a note to clients on Wednesday.