🇺s Elections 2024: Impact of the ACA on Health Care&Insurance

22. Juli

🇺🇸🗳️ Elections 2024: Impact of the ACA on Health Care and Insurance💊 📊

Hello Traders,
The U.S. elections are keeping the financial market in a state of uncertainty, especially the insurance and healthcare sector. Analysts are keeping an eye on subsidies for the Affordable Care Act (ACA), which will expire next year.

• Republican Scenario: If the Republicans win, they anticipate a reduction in red tape and the possible end of these subsidies and a return to the Trump Trade. This could negatively affect hospitals, but would benefit Medicare Advantage companies, such as Centene (NYSE) and Molina Healthcare (NYSE).

The “Trump Trade” refers to market movements following the election of Donald Trump in 2016. Stock markets surged, with the S&P 500 up more than 60% and the Nasdaq up about 120%, benefiting the industrial, financial and energy sectors. Expected policies included tax cuts, deregulation and increased infrastructure spending, which impacted bond yields, inflation expectations and a stronger dollar due to higher interest rates and an influx of foreign capital.

• Democratic Scenario: In contrast, a Democratic victory could ensure the continuation of ACA subsidies, which would boost shares of ACA-linked companies and hospitals. Among the beneficiaries would be Oscar Health (NYSE) and HCA Healthcare (NYSE).

This weekend Biden has been ruled out as a Democratic choice and now Kamala and Michelle Obama supported by her husband, are going to compete for the presidential seat considering that Trump has already defeated in presidential debate Hilary Clinton (2016) and indirectly in the current presidency Harris has already been defeated being Biden's vice president as a presidential set.

Currently, polls show an increase in support for Trump, suggesting that a Republican victory is possible.

Do you think a return to a cheap dollar and rising government debt with higher interest rates is feasible with Trump at the helm?

Ion Jauregui – ActivTrades Analyst





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