BUZZ – Health insurance companies and hospital stocks rise, boosted by improved outlook on policy risks

November 4 - ** The health insurance company Molina Healthcare (MOH.N) saw its share price rise 6.4% in pre-market trading to $221.14; Centene (CNC.N) shares rose 4.5% to $70.50

** TD Cowen stated that after the Democratic Party took full control of Congress, policy risks for hospitals and insurers focused on Medicaid were lower than for most healthcare companies

** Hospital operator HCA Healthcare (HCA.N) shares rose 3.8% to $480.2 in pre-market trading, while Universal Health Services (UHS.N) shares increased 2.2% to $181.01

** The broker expects that healthcare affordability and industry accountability will become the core focus of the healthcare agenda, bringing higher "headline risks" to most segments of the industry

** The report said that during President Donald Trump's administration, a comprehensive reform remains unlikely, but Democrats may use debt ceiling negotiations to push for a restoration of "Obamacare" subsidies and reverse cuts to Medicaid payments

** Citi expects stricter scrutiny of drug pricing and federal health agencies, but believes the short-term impact on pharmaceutical companies is limited, and anticipates that existing pricing agreements with the Trump administration will remain unchanged

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