Thoughts about Trump US election win on managed-care industry

Following the news that Donald Trump is the winner of the 2024 US Presidential Election, Morningstar Equity analyst Julie Utterback has published a new note about the impact of this on the managed-care industry.

With the Republicans winning key federal electable bodies (White House and Senate at the time of writing) in the US election, pressure on certain parts of the managed-care industry could ease a bit, while other areas would still face scrutiny, but at this point, we're not changing any fair values.

Positively, Ms Utterback opines, the Republicans' leadership could mean less pressure on Medicare-focused insurers like Humana and CVS Health, while antitrust scrutiny also could dissipate. Negatively, Medicaid and the individual exchanges - two Centene strongholds - could see less support under the Republicans. Also, she still views pharmacy benefit management transparency as a key concern for both major political parties, but we expect potential legislation to be manageable for top-tier players like Cigna, CVS, and UnitedHealth.