Market Overview

GOP Health Care Reform: How It Got To Where It Is, What's Likely To Happen Next

Share:
GOP Health Care Reform: How It Got To Where It Is, What's Likely To Happen Next

The drama in Washington surrounding health care reform seems to change on a daily basis, and the most recent maneuver by Senate Majority Leader Mitch McConnell has some Republicans scratching their heads.

After Republicans failed to scrape together enough votes to pass the second version of their Senate health care reform bill, McConnell announced on Tuesday night that the Senate will vote next week on simply repealing the Affordable Care Act.

At first glance, McConnell doesn’t appear to have the votes lined up for even a simple repeal, leaving onlookers to speculate about what the Republicans’ plan is heading forward.

In a new note to clients on Wednesday, Height Securities analyst Stephanie Miller provided two possible explanations for the decision. Miller says McConnell either wants to get the (likely unsuccessful) ACA repeal vote on the record and move on to other legislative priorities or he wants to set the stage for another crack at repeal-and-replace down the road after previously declaring the approach dead in the water.

But when it comes to figuring out what direction healthcare reform takes now, Miller said it's anyone's guess.

“At this point, we don’t suspect anyone – including Congressional Leadership and likely McConnell himself – could say with confidence what happens over the next few weeks,” she wrote.

Related Link: What To Know About The Revised Health Care Bill

After noting that no issue is ever truly dead in Washington, Miller said the chances of Obamacare repeal are now slim and getting slimmer. Height is now estimating the chances of ACA repeal by August recess at 10 percent, down from as high as 70 percent earlier this year.

Investors certainly haven’t been rattled by the uncertainty surrounding healthcare reform. The Health Care SPDR (ETF) (NYSE: XLV) is up 1.0 percent in the past five trading sessions and is now up 16.5 percent year-to-date.

Posted-In: ACA ACHAAnalyst Color Health Care Politics Top Stories Analyst Ratings General Best of Benzinga

 

Related Articles (XLV)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
ASPUCanaccord GenuityMaintains11.0
AAPLEvercore ISI GroupMaintains305.0
FCELCraig-HallumReinstates0.500
THTXMackie ResearchUpgrades
CFBSandler O'NeillInitiates Coverage On15.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Analyst: Nvidia, Western Digital Only Buys In Semi Space Given Current Industry Dynamics

A Decade Of Sales Growth Lies Ahead For Vertex Pharmaceuticals