Related: Post-Election Day Tests Linger for Healthcare ETFs
Uncapped Revenue for Dialysis Providers
In California, a heated debate occurred over the payment to dialysis providers, which can prove costly–rising healthcare costs have already been a topic brewing in political realms. Medicare estimates show that it nationally spends $34 billion a year on dialysis treatment providers.
In the end, California voters decide against putting a cap on revenue generation for dialysis providers. Healthcare provider DaVita Inc gained over 11% in Wednesday’s trading session.
“We are grateful that Californians voted down Proposition 8,” DaVita said in a statement on Wednesday, “It’s disappointing that the SEIU-UHW used the ballot initiative process as leverage in pursuing their own objectives, despite the potential harmful consequences to nearly 70,000 California dialysis patients.”
Medicaid Expands
Idaho, Nebraska and Utah proposed legislation on their respective ballots to address increased access to their Medicaid programs for low-income individuals–a measure already taken on by 34 other states as part of the Affordable Care Act. Healthcare analysts at Avalere posited that increasing Medicaid accessibility would translate to 325,000 more people having access to health care they wouldn’t otherwise qualify for.
“The popularity of Medicaid expansion has risen, particularly in states with high rates of uninsured,” said Chris Sloan, director at Avalere. “Although state legislatures can restrict the governor’s authority to expand Medicaid unilaterally in certain states, changing voter preferences around expansion may put pressure on legislators, many of whom also face reelection in November.”
Voters in all three states opted for Medicaid expansion and a Democratic majority in the House could mean more expansions in certain states like Montana, Kansas and Maine.
For more market trends, visit ETFTrends.com
