Yahoo Finance is tracking healthcare stocks after House Republican leaders outlined their plan to repeal and replace Obamacare. House Speaker Paul Ryan, who presented some details of the plan with two House committee chairmen, told reporters that the GOP will introduce the new legislation when Congress returns from its President’s Day break.
During his weekly news conference, Rep. Paul Ryan of Wisconsin said, “It has become increasingly clear that this law is collapsing.” Earlier this week, insurance giant Humana (HUM) announced that it’s pulling out of all Affordable Care Act markets by the end of the year. Insurance giants Aetna (AET) and Anthem (ANTM) are both considering doing the same if changes are not made. Aetna has already left most of the markets where it previously offered plans, remaining in just four states this year. While speaking at the Wall Street Journal’s Future of Healthcare event this week, Aetna CEO Mark Bertolini said Obamacare was in a “death spiral.”
Here’s what the GOP is considering in its plan. It will provide a cap on the amount of people on Medicaid by focusing the program on helping those ‘most in need,’ give states the opportunity to accept funding to best take care of their patient populations and provide portable, monthly tax credits.
Another headline that’s moving the health insurance sector is news that the U.S. Justice Department has joined a whistleblower lawsuit against UnitedHealth (UNH). The suit, initially filed in 2011, alleges the country’s largest health insurer overcharged Medicare hundreds of millions of dollars. Shares of UnitedHealth are moving lower on the news.
For more on the insurance sector and the GOP’s plan to overhaul Obamacare, check out the Final Round, live at 4 p.m. EST, right here on Yahoo Finance.