Additionally, the actuaries calculated that around 8.4 million Americans became insured in 2014 and noted their increased use of medical services. The number of people on Medicaid is projected to increase to 78.1 million by 2024, outstripping Medicare, which is expected to have 70.3 million enrolled.
“Differences between the Senate and House bills are also likely to have mixed credit implications on Medicaid business. The Senate bill’s one-year extension of the current Medicaid funding mechanism is a modest positive since it gives health insurers and states an additional year to adapt to the legislation’s changes. However, over the longer term the Senate bill could provide lower funding levels given its lower inflation adjuster,” according to Fitch.
IHF holds 45 stocks and tracks the Dow Jones U.S. Select Healthcare Providers Index. Dow component UnitedHealth Group Inc. (NYSE: UNH) accounts for 13.5% of the ETF’s weight, more than double the weight assigned to IHF’s second-largest holding. Managed healthcare providers are 48% of the ETF’s while healthcare services providers and facilities operators combine for over 45%.
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