“I’m going to bring down drug prices,” President-elect Donald Trump told Time in an interview released recently. “I don’t like what has happened with drug prices.”
With these sixteen words, Trump roiled Healthcare stocks. The comments sent Healthcare stocks down as much as -2% on the day. The subsector Biotech (IBB) was down as much a -4% on the day.
Clearly, there’s a lot of uncertainty about the GOP’s plans for healthcare reform. Top of mind for investors, will Trump be able to repeal Obamacare? Hedgeye Potomac Healthcare Policy analyst Emily Evans suggests how policy could change under a Republican, more consumer-driven, healthcare agenda:
1) Tax credits & expanded use of HSA/FSA/HRA
- Refundable and advance-able tax credit to purchase insurance anywhere
- Tax credit could also be taken in lieu of government and private insurance
- Max contribution to HSA set at max combined annual deductible and out of pocket expenses
2) More Insurer Options
- Allowing insurers to pick home state of regulation and sell into other states
- Allowing non-conventional groups to sponsor health plans
3) Medicaid reform
- Cost sharing and premium support
- Work requirements
Evans also discusses what this means for investors and the winners and losers under a GOP plan (see below).
Click here to watch the full video “Here Comes Trump: Our Top Five Investing Themes.”
