With the Democrats taking over the House of Representatives and Republicans widening their majority lead in the Senate, Congress won’t be able to take another stab at overturning the 2010 Affordable Care Act, which extended health insurance cover to millions of previously uninsured Americans.
While Medicare For All remains a potential headwind, some other IHF components merit consideration in addition to UnitedHealth.
“We think Cigna’s merger with Express Scripts has created an organization that deserves a narrow moat rating. As a result, we raised our fair value estimate to $231 per share from $160. While we think the combination of medical and pharmacy benefit management is strategically sound, underpinning our positive trend rating, integration execution will be critical for continued stock outperformance from here,” according to Morningstar.
For more information on the healthcare segment, visit our healthcare category.