Stocks To Watch As CBO Expected To Release Score For GOP Healthcare Bill

The Congressional Budget Office (CBO) is expected to release its score for the controversial new healthcare bill on Monday. The new plan spearheaded by House Speaker Paul Ryan aims at replacing the Affordable Care Act (ACA).

The CBO is expected to deliver estimates of both how much the new plan would cost to implement and how many Americans will lose access to health insurance under the plan.

According to Height Securities' Andrew Parmentier, any bad news could weigh heavily on hospitals and managed care stocks.

“Though some will argue the Ryan plan has money earmarked to help states expand Medicaid coverage, we see it as too little compared to current policies and Republican governors would seem to agree with our assessment,” Parmentier explains.

Related Link: Here's Who's Getting A Tax Cut Under The New Healthcare Proposal (You're Probably Not Included)

If too many Americans lose coverage under the new plan, it could be bad news for hospital stocks such as Community Health Systems (NYSE:CYH) and HCA Holdings Inc (NYSE:HCA). At the same time, state Medicaid cutbacks could also hit managed care companies Cantene Corp (NYSE:CNC) and Molina Healthcare, Inc. (NYSE:MOH) the hardest.

The Brookings Institution has estimated that 15 million Americans could lose health insurance coverage under the new plan.

Earlier this year, the CBO projected that the federal debt will grow by $10 trillion over the next decade under President Donald Trump’s proposed policies.