By Joseph Walker
A GOP budget plan that requires deep cuts to Medicaid spending battered shares of health insurers and hospitals that do big business in the government funded health program.
Shares of Centene, the biggest manager of state Medicaid programs, fell more than 7% in midday trading. Shares of Molina Healthcare, which derives about 80% of its revenue from Medicaid, fell 7.8%. Another big Medicaid player, Elevance Health, fell about 4%.
Hospital stocks also fell on fears of pressured reimbursement for the Medicaid patients they care for. Community Health Systems fell 9.3% and HCA Healthcare was down 4%.
House Republicans are looking to pass a budget that cuts total government spending by up to $2 trillion over a decade and implement tax cuts of up to $4.5 trillion. Some in the party, including President Trump, have cautioned against cutting the program.
Medicaid is jointly funded by states and the federal government, and provides health insurance to nearly 80 million low-income people.
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(END) Dow Jones Newswires
February 26, 2025 12:47 ET (17:47 GMT)
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