Health care stocks have taken a beating in the last week. Most of the damage has been to the major health insurance companies which have given back tens of billions of dollars in market value. Most are citing fears of “Medicare for All” as the leading factor behind the battering. Many stock analysts are asking investors to ignore the health plan being proposed by the Democrats.
“Health care lawmaking is difficult, and change occurs infrequently,” wrote Spencer Perlman, director of health care research at Veda Partners. “This is not a bug in the American political system, it is its design. Enacting a wholesale change of the American health care system is highly unlikely, and we urge investors to follow the M4A debate with a wary eye.”