Centene shares plummet as Trump win makes waves in health care

The future of health care policies that have benefited health care companies like Centene Corp. and Cerner Corp. is now uncertain with the election of Donald Trump — and investors reacted strongly on Wednesday.

Centene shares fell 19 percent to close at $54.05 on Wednesday. Cerner’s stock dropped 4.6 percent from $52.65 to $50.22. Other health insurers and hospital companies also closed lower.

Trump has said repealing the President Barack Obama’s Affordable Care Act, which was signed in 2010 and paved the way for millions of Americans to gain access to health insurance regardless of preexisting health conditions, will be one of his top priorities.

Centene and its peer Molina Healthcare Inc. have had the most success under the law, according to analyst Michael Baker with Raymond James.

Centene CEO Michael Neidorff said Wednesday the market was having a “gross overreaction” to the election, and he expected the company’s stock to rebound. Jeffrey Loo, an equity analyst at CFRA Research maintained that most of Wednesday’s decrease was a reaction to decreasing hospital capital expenditures.

Read more: St. Louis Post-Dispatch, Kansas City Business Journal

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