Analysts see health insurers’ share price pummeled by political turmoil tied to Trump impeachment inquiry
Shares of several insurers have dropped following the announcement Tuesday by Speaker
"We think this is being partially driven by negative sentiment after the speaker of the House this week announced an impeachment inquiry of
Scarola believes the response is misguided. He cited polling by the
He maintained his positive outlook for the industry. In an interview, Scarola said Medicare Advantage, which is offered by private health insurers, has been growing at an 8% annual rate over the past five years, while Medicaid, a government program, "has flatlined."
"You can look at the Medicare and Medicaid markets to see how voters are choosing between government-run and private plans," he said. "If you can stomach the volatility it's a good long-term investment," he said of the health insurance sector.
Share prices of health insurers began tumbling months before Democratic leaders of the House launched the impeachment inquiry. Two indexes -- the S&P Managed Health Care and S&P 500 -- tracked closely until February when a Medicare for All bill was introduced in the House, Scarola said. Share prices of health insurers began their fall with the introduction of the legislation.
But even if analysts and investors believe the
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