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Health Insurer Shares Slide After Trump Calls to Redirect ACA Payments

The fight over expiring enhanced premium tax credits has stalled government funding during open enrollment.

Overview

  • President Trump denounced the Affordable Care Act subsidies on Truth Social as a windfall for insurers and urged sending the money directly to people, including through personal health savings accounts.
  • Health insurer stocks fell on Monday, with Centene down about 7% to more than 8% in trading, while Molina, Elevance, UnitedHealth, and HCA also declined.
  • The federal shutdown that began Oct. 1 continues as talks hinge on the subsidy question, and the Senate advanced a measure on Sunday aimed at reopening the government.
  • Democrats are pushing to extend the enhanced credits before restoring government funding, while Republicans say they will consider the issue after reopening.
  • A Washington budget group estimated this year’s federal payments tied to ACA plans at roughly $138 billion, and the enhanced subsidies have helped marketplace enrollment reach about 24 million since 2021.