Shares of health insurers traded higher in the premarket on Wednesday after Donald J. Trump was elected the 47th President of the United States, ending the four-year rule under the outgoing President Joe Biden.

Notable gainers include managed care players focused on Medicare Advantage, the private version of government-backed insurance.

Humana (NYSE:HUM), Alignment Healthcare (ALHC), UnitedHealth Group (NYSE:UNH), and Clover Health (NASDAQ:CLOV) have all traded higher, while shares of CVS Health (NYSE:CVS) spiked after the company reported better-than-expected Q3 2024 in the premarket.

Recent efforts implemented by the Biden administration to cut Medicare reimbursement rates despite higher medical utilization among enrollees have weighed on the group in recent months.

However, shares of Molina Healthcare (MOH), Centene (CNC) and Elevance Health (ELV) which focus on Medicaid, a healthcare program jointly funded by states and the government, have come under pressure in the premarket.

There are concerns that a future GOP administration is unlikely to raise reimbursement rates for Medicaid despite higher acuity reported from its enrollees after a pandemic-era pause in eligibility reviews ended in 2023.