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Key takeaways
- President Donald Trump is reportedly preparing to unveil a health care proposal that would extend support for the Affordable Care Act, sending shares of major health insurance companies soaring on Monday.
- The plan is expected to include income limits for those who can qualify and provide funding to keep enrollment costs low. POLITICO I mentioned.
Shares of several major health insurance companies rose Monday following reports that President Donald Trump may unveil a health care proposal that would extend Affordable Care Act subsidies.
Molina Healthcare (MOH) shares are up more than 3% in recent trading, while Centene (CNC) shares are up 5%, and Oscar Health (OSCR) shares are up 18%. (Read our daily markets coverage here.)
The plan, which could be unveiled as soon as today, is expected to extend ACA subsidies by about two years and could include new income limits for enrollees, along with minimum premium payments, according to POLITICO.
Why is this news important?
Shares of major health insurance companies are rising on news that the Trump administration may support a two-year extension of subsidies under the Affordable Care Act. Additional premium support and cost sharing could help stabilize enrollment rates and reduce volatility in individual markets.
The White House is set to ask Congress to approve funds to reduce cost-sharing, which would reduce out-of-pocket expenses for some ACA beneficiaries. POLITICO I mentioned.
Insurance plan premiums under the Affordable Care Act were a major source of contention in the record government shutdown that ended earlier this month. Democratic lawmakers have blocked funding bills under the pretext of extending subsidies that lowered ACA plan premiums. The shutdown ended after Republicans in Congress agreed to discuss insurance premiums after the government reopens.
The White House did not respond Investopedia Comment requested in time for publication.
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