Sign up for our daily briefing
Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.
Catch up on the day's biggest business stories
Subscribe to Axios Closer for insights into the day’s business news and trends and why they matter
Stay on top of the latest market trends
Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.
Sports news worthy of your time
Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.
Tech news worthy of your time
Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.
Get the inside stories
Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Want a daily digest of the top Denver news?
Get a daily digest of the most important stories affecting your hometown with Axios Denver
Want a daily digest of the top Des Moines news?
Get a daily digest of the most important stories affecting your hometown with Axios Des Moines
Want a daily digest of the top Twin Cities news?
Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities
Want a daily digest of the top Tampa Bay news?
Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay
Want a daily digest of the top Charlotte news?
Get a daily digest of the most important stories affecting your hometown with Axios Charlotte
Sign up for Axios NW Arkansas
Stay up-to-date on the most important and interesting stories affecting NW Arkansas, authored by local reporters
Congressional gridlock is good for health care stocks. Photo: Bryan R. Smith/AFP via Getty Images
The stock prices of health care companies soared Wednesday morning, as Wall Street analysts predict a Democratic House and Republican Senate will keep the profitable status quo humming for at least two more years.
The big picture: Health care companies have thrived in the Affordable Care Act era, and they don't want large-scale changes to the law or the industry at large.
Winners: Dialysis companies DaVita and Fresenius (stock prices up 11% and 9%, respectively).
- They funded the campaign that helped defeat a California ballot measure that would have capped dialysis profits.
Health insurance companies also rallied Wednesday, because ACA repeal is pretty much dead for now.
- Several states that expanded Medicaid through ballot initiatives also helped boost the prices of Centene, Molina and WellCare — big Medicaid insurers that stand to benefit by covering those people.
Mixed bag: Hospital chains were all up Wednesday, but a split Congress doesn't change the fact that fewer people are getting hospitalized. Pharmaceutical companies also saw their stocks rise, but they could face Democrat-led House hearings — although those hearings usually lead to short-term public shaming and little to no action on their pricing practices.
Looking ahead: The industry will aggressively fight any calls for single-payer or "Medicare for All" as the 2020 campaign kicks off.
- Gary Taylor, a health care analyst at J.P. Morgan Securities, sent a note to investors this morning that said Republican Senate gains "make it much more difficult for Democrats to regain the chamber in 2020, regardless of the presidential outcome. This should provide a measure of gridlock comfort beyond 2020, diminishing the anticipated 2020 'Medicare for All' campaign overhang."