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Dark days for health insurers, hospitals are numbered
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Dark days for health insurers, hospitals are numbered# Stock
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** On Tuesday, shares of health insurers and hospital operators were
battered as investors continued to worry about potential changes to
healthcare policy, but BMO Capital Markets analyst Matt Borsch says a
turning point is not far away
** The sector has been pressured in recent months as Senator Bernie Sanders
pushes his Medicare-for-all plan and the Trump administration discusses a
proposal to end a decades-long system under which drugmakers give benefits
managers rebates
** The S&P 500 Managed Health Care index .SPLRCHMO, which lists health
insurers, is down 10.6 pct YTD, versus a gain of 16 pct on the S&P500 .SPX
during the same time period
** The hit to shares on Tuesday came despite industry bellwether
UnitedHealth Group's UNH.N beat-and-raise Q1; analysts say fundamentals in
sector are strong (Full Story)
** These stocks are behaving as they did in the dark days of 2008-2010 when
there was a recession, despite more modest challenges, Stephen analyst Scott
Fidel says (Full Story)
** While recent proposals have rattled stocks, they are likely to face
uphill battles to come to legislative fruition ... the key challenge right
now relates to timing and the 2020 elections are over 18 months away, Fidel
adds
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