Why Molina Healthcare (MOH) Shares Are Falling Today
What Happened?
Shares of healthcare insurance company Molina Healthcare (NYSE:MOH) fell 7% in the afternoon session after President Donald Trump proposed a significant change to the Affordable Care Act (ACA), suggesting federal funds should go directly to people instead of health insurance companies. In social media posts, Trump called insurance companies “money sucking” and argued that people could purchase “much better, healthcare” if the funds were sent directly to them. This proposal posed a substantial risk to health insurers like Molina, which get a large part of their revenue from government-sponsored programs. The comments triggered a broad sell-off across the healthcare sector, with Molina, Centene, and HCA Healthcare all listed among the S&P 500's worst-performing stocks during the session. The negative market sentiment was also reflected in unusual options activity, where large traders took a notably bearish stance on the company.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Molina Healthcare?
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