With ballots still being counted in battleground states at press time, the outcome of the Nov. 3 presidential election was still too close to call. Meanwhile, it looked like Republicans will barely hold onto their majority in the Senate, while Democrats will continue to control the House. Nevertheless, analysts and investors seemed relatively confident in the positioning of managed care organizations, especially those with a stake in Medicare Advantage.
“We have seen enough to say that the election is shaping up well for Managed Care stocks,” wrote SVB Leerink analyst Stephen Tanal on Nov. 4. The firm reiterated its “bullish outlook” on publicly traded firms with minimal Affordable Care Act exposure, namely those with a diversified portfolio (e.g., Anthem, Inc. and UnitedHealth Group) and MA-focused Humana Inc. He added that the “final outcome in the Senate will be important for investor sentiment on Medicaid-focused MCOs that derive more of their earnings from ACA-related programs,” notably Centene Corp. and Molina Healthcare, Inc.