Skip to Content
Stock Strategist Industry Reports

What a Democratic Sweep Means for Healthcare

We think the insurers could be most influenced by potential reforms.

Mentioned: , , , , , , , , ,

The Democrats have won the remaining two U.S. Senate seats in the Georgia runoffs, and we expect Joe Biden's administration will seek to implement further healthcare reforms. However, with such a slim majority in the Senate, compromises on ideals espoused by the Biden campaign may be required to get healthcare legislation passed with support from moderate Democrats. With significant compromises possible in the next several months as the legislation is crafted, we will keep steady on our economic moat and valuation views until more clarity emerges on the potential changes to the healthcare industry.

Overall, even in a Democratic sweep where further healthcare reforms are possible, Biden's existing proposals to expand the insured population create a spectrum of opportunities and risks for healthcare players, in our opinion, and the devil will be in the legislation’s details in terms of how it will affect healthcare industry players. In general, though, the United States appears likely to remain in increasing access mode under Biden’s plan. The administration estimates that at least 97% of Americans would be covered under the president’s proposals, up from about 91% before the coronavirus pandemic and associated weakness in the U.S. employment market.

Julie Utterback does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.