Trump's changes to Obamacare will impact shares of hospitals because of the expected spike in uninsured patients. Fred Katayama reports.
President Donald Trump backed away from a bipartisan deal reached by Republican Senator Lamar Alexander and Democratic Senator Patty Murray. That deal aims to stabilize Obamacare by restoring subsidies to health insurers. Trump wrote in a tweet: "I am supportive of Lamar as a person & also of the process, but I can never support bailing out ins co's who have made a fortune w/ O'Care." His decision comes one day after he had signaled his support for the plan. That boosted insurers' stocks, with United Health, Anthem, and Aetna taking the lead. They didn't come down after Trump changed his mind. But hospital stocks, such as Tenet and Select Medical Holding, traded lower. Also falling: shares of drugmakers Pfizer, Johnson & Johnson, and Eli Lilly. CFRA's Jeffrey Loo: (SOUNDBITE) JEFFREY LOO, ANALYST, CFRA RESEARCH (ENGLISH) SAYING: "I think bigger impact will be on the healthcare facilities, the hospitals. If the premiums raise because the healthier, younger patients start signing up for the loser-cost plans, it will result in high level of uninsured patients. And that will impact the hospitals because, you know, they're gonna have more uninsured patients walking through their doors." Last week healthcare stocks fell after Trump said he would end funding of Obamacare subsidies for people with incomes below the federal poverty level.