November 15, 2019 | CNBC
Healthcare Stocks Rise as Trump Talks New Price Disclosure Rules for Hospitals and Insurers
Health-care stocks rose Friday after President Donald Trump discussed his administration’s new rule that will force hospitals to disclose the discounted prices they negotiate with insurers.
Insurers UnitedHealth, Cigna, Humana and Anthem were each moving to session highs in intraday trading Friday. Shares of hospitals HCA Healthcare, Tenet Healthcare and Community Health Systems were also higher. The XLV, an ETF that tracks the health-care industry’s biggest companies, was more than 1% higher.
The federal rule, set to be enacted in 2021, is expected to face legal challenges. It will require hospitals to post their standard charges for services, including the negotiated rates with insurers and the discounted price a hospital would accept directly from a patient who paid in cash, among other measures.
Speaking from the White House on Friday afternoon, Trump said his plan gives Americans “control over their health-care decisions.”
The stock reaction to Trump’s rule means hospitals and insurers “aren’t very afraid,” said Zeke Emanuel, a medical doctor and former White House health-care advisor.
Emanuel added that the $300-a-day penalty under the plan for hospitals that don’t comply with the rule is “not going to be very painful” for most.