Insurers Slide As Congress Postpones Decision On Health Subsidies, Delays Obamacare Subsidy Vote To December
Shares of major health insurers slid Monday as investors reacted to a Senate deal that ended the 40-day U.S. government shutdown but failed to extend subsidies under the Affordable Care Act (ACA).
The agreement delays the contentious issue until December, raising uncertainty for millions of Americans who depend on the subsidies to afford health coverage.
Health insurance stocks are trading lower as markets weighed the political impasse's impact on the sector.
On Sunday, Reuters cited Trump’s Truth Social post, which blasted the subsidies as a “windfall for Health Insurance Companies, and a DISASTER for the American people,” while demanding the funds be sent directly to individuals to buy coverage on their own. “I stand ready to work with both Parties to solve this problem once the Government is open.”
Stocks to Watch
Cigna Group (NYSE:CI)
Centene Corp (NYSE:CNC)
CVS Health Inc (NYSE:CVS)
Elevance Health, Inc. (NYSE:ELV)
Humana Inc (NYSE:HUM)
Molina Healthcare Inc (NYSE:MOH)
UnitedHealth Group Inc (NYSE:UNH)
HCA Healthcare, Inc. (NYSE:HCA)
Tenet Healthcare Corporation (NYSE:THC)
The subsidies, introduced during the COVID-19 pandemic, are set to expire at the end of 2025.
Without congressional action, roughly 24 million enrollees could face sharp premium increases for their 2026 plans. Experts estimate that monthly premiums for ACA plans could more than double if the pandemic-era assistance ends.
The procedural vote passed 60-40, just enough to overcome a filibuster, and paves the way for short-term funding through January 30.
As part of the compromise, Republicans and a small group of Democrats agreed to hold a December vote on extending ACA subsidies.
While Democrats had pushed to include the extension in the current funding package, GOP negotiators insisted on separating the issue, citing concerns over the federal budget and deficit.
The temporary spending bill also prevents federal agencies from firing employees until January 30, a concession viewed as a win for federal worker unions and their allies.
It also halts Trump's push to downsize the federal workforce, at least for now.
The ongoing debate over ACA subsidies remains one of the most politically charged aspects of federal spending negotiations. With the open enrollment period for 2026 coverage running through January 15, lawmakers have a narrow window to act before millions face steep cost increases.
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