On Tuesday, drugmakers and hospitals saw how their shares went down. The reason behind this is that the attention of the political scene focused on this sector recently. President Donald Trump announced that it is his desire to trigger such a negative event regarding drug prices and hospital shares. As a consequence, the Republicans introduced in the Congress a bill that acts as a replacement for the 2010 Affordable Care Act.
This week, the drugmakers and hospital shares plummeted under pressure created by President Donald Trump in this industry. He moved one step forward in his promise that he made during his presidential campaign to replace Obamacare. Thus, it was only Tuesday when Republicans proposed a different bill to the Congress. The healthcare proposition is going to favor insurers while the companies that work with Medicaid will experience a decline of prosperity.
This bill is a key component of Trump’s political agenda. During his presidential campaign, he signaled the weaknesses in the Obamacare act and engaged to turn it for the better. However, not all Republicans agreed with the proposal. Several of them are already questioning its efficiency. As the doubt regarding the bill increased, by the end of the day the stocks decreased. As a consequence, the new bill is facing uncertainty.
At the same time, the energy companies headed down while tech companies recorded minor gains. The major U.S. indexes were at their all-time highs last Wednesday. The Dow Jones Industrial Average that shows how 30 of the largest companies in the United States traded during a normal trading session fell 0.1% to 20,924.76 points. The 500 index from Standard & Poor recorded as well a loss of 6.92 points or 0.3% to 2,368.39.
The drug companies and hospital shares experienced a decline starting with the middle of 2015. This was when investors started to fear that the government intends to meddle in this sector and take control over drug prices to curb their evolution. However, even though Trump mentioned this particular issue, he never disclosed details on how he wants to proceed, leaving the matter exactly as it was before.
The bill proposal on behalf of the Republicans would invest people that acquire their own insurance with tax credits. On the other hand, this act will enable the government to retreat from its duty to support citizens who can’t afford insurance. This action would result in leaving more Americans uncovered by insurance yet at the same time Medicaid would be overhauled.
Image source: 1