What is Medicaid and why does it matter for these stocks?

Medicaid is a government healthcare program that provides coverage for low-income individuals and families. For the companies in this theme, Medicaid represents a significant source of revenue, as they either provide insurance coverage, medical services, or administrative support for Medicaid beneficiaries. When political changes affect Medicaid funding or policies, these companies' profits can be directly impacted, making their stock prices sensitive to legislative developments.

How does Senator Tillis's retirement impact these healthcare stocks?

Senator Thom Tillis was a moderate Republican who opposed cuts to Medicaid funding. His retirement removes a key vote that protected these programs, potentially making it easier for future legislation to reduce Medicaid spending. For the companies in this theme, this political shift increases uncertainty about their future revenue from government healthcare programs, which could affect their stock performance as investors reassess the legislative risks.

What are managed care organizations (MCOs)?

Managed care organizations (MCOs) are health insurance companies that contract with healthcare providers and medical facilities to provide care for members at reduced costs. Companies like Centene (CNC), Molina (MOH), and UnitedHealth (UNH) in this theme are MCOs that administer Medicaid plans for states. They receive fixed payments per enrolled member and are responsible for managing costs while providing required benefits, making their profitability sensitive to changes in Medicaid funding rates and regulations.

What is "legislative risk" and how does it affect healthcare stocks?

Legislative risk refers to the potential for changes in laws or regulations to impact a company's business model, revenue, or costs. For healthcare companies with significant Medicaid exposure, legislative risk is particularly important because changes to program funding, eligibility requirements, or reimbursement rates can directly affect their bottom line. Investors watch political developments closely when holding these stocks, as unexpected policy shifts can cause significant price movements in either direction.

14 handpicked stocks

Medicaid Politics

Discover companies whose fortunes are closely tied to government healthcare funding decisions. These carefully selected stocks represent businesses with significant exposure to Medicaid, now facing heightened legislative uncertainty after Senator Tillis's retirement.

Han Tan | Market Analyst

Published on June 30

Top Picks from This Group

Here are a few of the assets in this group. Create an account to unlock the full list.

Centene Corp.

CNC

Current price

$36.82

As one of the largest Medicaid managed care organizations, Centene's revenue is directly tied to the stability and funding levels of state and federal...

As one of the largest Medicaid managed care organizations, Centene's revenue is directly tied to the stability and funding levels of state and federal Medicaid programs.

Molina Healthcare, Inc.

MOH

Current price

$194.25

Molina specializes in providing managed healthcare services under the Medicaid program, making its financial performance highly sensitive to political...

Molina specializes in providing managed healthcare services under the Medicaid program, making its financial performance highly sensitive to political decisions on Medicaid funding.

UnitedHealth Group Incorporated

UNH

Current price

$353.72

UnitedHealth's Community & State segment serves millions of Medicaid beneficiaries, and any legislative changes to funding would materially impact a s...

UnitedHealth's Community & State segment serves millions of Medicaid beneficiaries, and any legislative changes to funding would materially impact a significant part of its business.

HCA Holdings, Inc.

HCA

Current price

$426.69

Universal Health Services Inc.

UHS

Current price

$205.54

Elevance Health, Inc

ELV

Current price

$340.24

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12 Month Growth Potential

Use the growth calculator to see how much investing in these assets could return over one year, based on aggregated analyst sentiment provided by Refinitive Ltd.

If you invested across these assets:

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In 12 months it might be worth:

$1,000.00

+32.95%

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About This Group of Stocks

Our Expert Thinking

Senator Tillis's retirement after opposing Medicaid cuts signals potential political volatility for healthcare programs. Companies with revenue tied to government healthcare funding now face increased legislative risk, creating an investment theme focused on businesses most exposed to these policy changes.

What You Need to Know

This collection includes managed care organizations, hospital operators, and specialized service providers whose profitability depends heavily on Medicaid funding. These companies are directly impacted by any changes to reimbursement rates or program funding, making them sensitive to political developments.

Why These Stocks

These companies were specifically selected for their high revenue exposure to Medicaid programs. Our analysts identified businesses where government healthcare spending significantly impacts financial performance, making them important to watch as the political landscape evolves.

Group Performance Snapshot

32.95%

Average 12 Month Profit

On average, analysts expect assets in this group to grow 32.95% over the next year.

10 of 14

Stocks Rated Buy by Analysts

10 of 14 assets in this group are rated Buy by professional analysts.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

🏛️

Political Ripple Effects

When legislation changes, these stocks move. The retirement of a key Medicaid defender opens the door to potential funding shifts that could dramatically impact these companies' bottom lines.

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Policy Plays for Savvy Investors

Smart money follows political developments. These healthcare providers represent direct exposure to government funding decisions, offering strategic positions for investors who understand the legislative landscape.

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Hidden Market Movers

While many investors focus on tech and consumer stocks, these healthcare companies with government exposure can experience significant price movements when policy news breaks—creating opportunities others might miss.

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