- Major healthcare stocks up 5% in Friday trading after the announcement.
- Sen. Warren’s proposed overhaul would incrementally expand coverage beginning with children and low income earners.
Presidential hopeful Sen. Elizabeth Warren released a plan Friday detailing her strategy for reducing healthcare costs and gradually transitioning to Medicare for All.
Healthcare stocks such as UnitedHealth Group Inc., Humana Inc., Anthem Inc. and Centene Corp. rose 5% by the close of the bell. Healthcare stocks had been under performing year to date because of the discussion of implementing Medicare for All on the part of several Democratic Presidential candidates. Sen. Warren’s plan’s scope, less comprehensive compared to that of Vermont Senator Bernie Sanders, increased the confidence and outlook for health stocks going forward.
The Massachusetts Senator’s plan would in the short term expand Medicare coverage to those under 18 years of age and to families making less than $51,000 per year. Sen. Warren estimated the cost of the proposal to be $20.5 trillion. The plan outlines a timeline whereby full Medicare for All would be reached by the Senator’s third year in office. Warren also vowed to take immediate action her first day upon election to lower prescription drug pricing.