Health bill weighs on stocks

Health care stocks once again went through the wringer this month as the Republican-led Senate made another attempt to undo the 2010 Affordable Care Act. As the bill gained traction, hospitals and health care facility operators took steep losses, and so did firms that run federal-state Medicaid programs. That changed as the bill faltered, and on Tuesday Republican leaders said they would not bring the bill to a vote.

The bill would have cut Medicaid’s funding over time. Medicaid program administrator Centene skidded 3.9 percent last week and WellCare, which provides managed care services through Medicare and Medicaid, fell 6 percent. Nursing and rehabilitation center operator Kindred

Healthcare sank 13.8 percent. Health insurers also weakened.

The bill proposed taking money from the ACA’s Medicaid expansion and cost-reductions it gives to people with lower incomes and converting it to block grants the federal government gives to states.

One stock that climbed was HealthEquity, which provides services for managing health care accounts, as the proposal could have boosted demand for its services. It jumped 4.9 percent last week.

Late last week the stocks began to reverse course and recover some of their losses as a few key Republican senators said they oppose the legislation.

The companies that dipped last week also took steep losses in March and in late July as Congress debated different repeal bills that ultimately failed.