Why the Affordable Care Act is in real trouble this time
Published On Nov 17, 2024, 9:00 AM
The Affordable Care Act (ACA) faces significant challenges as Republicans, having gained control of the government, plan to make substantial changes. Key provisions, including expanded insurance subsidies set to expire in 2025, may lead to increased premiums and deductibles, which could result in up to 3 million Americans losing their health coverage. While Republicans have yet to outline specific plans, potential measures include cuts to ACA funding and relaxing regulations, which could adversely affect insurance availability and affordability for many Americans.
Stock Forecasts
UNH
Negative
The uncertainty surrounding the ACA and potential cuts to health care funding could negatively impact companies operating within the health insurance sector. As costs rise and coverage decreases, insurance companies may face reduced enrollment and higher premiums, leading to volatility in stock performance.
CNC
Positive
Alternatively, if Republicans implement plans that prioritize tax savings or make health insurance more competitive, it could favor certain health technology or insurance stocks that could benefit from a shift towards more consumer-directed healthcare options.
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