Health-Insurance Stocks Slide Amid Political Uncertainty

Shares of major health insurers tumbled Monday as political headwinds buffeted the sector. Oscar Health (OSCR) led the decline with a 17% plunge, while Centene (CNC) and Elevance Health (ELV) dropped 8% and 4.4% respectively. The selloff followed critical remarks from former President TRUMP and ongoing uncertainty around healthcare subsidies as Congress negotiates to end the government shutdown.

The broader healthcare sector felt the pressure, with UnitedHealth (UNH) dipping 0.8%, Molina Healthcare (MOH) sliding 7.3%, Humana (HUM) falling 5.4%, and Cigna Group (CI) losing 2.4%. Investors remain cautious as lawmakers work to resolve the fiscal standoff that began October 1, with key healthcare funding provisions still unresolved.

Market sentiment reflects growing anxiety about potential policy shifts. While Senate progress toward ending the shutdown offers some relief, the absence of clear direction on insurance subsidies continues to weigh on the sector. The sector's underperformance highlights how political rhetoric can quickly translate into market volatility.