Healthcare stocks rose on March 24 after the House yanked the American Health Care Act that would repeal and replace Obamacare, dealing a blow to one of President Donald Trump’s major promises during his campaign.
The bill failed to garner enough votes from House Republicans, which painted an ironic picture given that Trump’s party controls Congress. Despite lobbying efforts by House Speaker Paul Ryan, disapproval from moderate GOP members and the party’s most conservative lawmakers led to the collapse of the proposal.
Unanimous opposition from Democrats also contributed to the shortage of the required 216 votes.
Hospital stocks gained the most after news of the bill’s failure to win votes broke out. The proposed healthcare bill would have affected millions of Americans’ insurance and prevent low-income households to have access to the Medicaid program.
Sheryl Skolnick, an analyst with Mizuho Securities, said that the “bad legislation” has a negative impact on the healthcare industry, including physician staffing concerns (as noted by agencies such as Emergency Staffing Solutions) and the welfare of patients.
In Texas, healthcare workers have remained vigilant on updates for the legislation, since the bill would have sought to cut millions from Medicaid. Industry workers said that the state has the highest number of people without insurance in the U.S.
Aside from that, Texas already pays the lower than the national average amount for Medicaid patients, which means that reducing the budget would further put a strain on its ability to provide affordable healthcare to its citizens.
Americans will have to settle for Obamacare whether or not they are satisfied with their current insurance package. As the GOP party works to find common ground, it’s safe to say that the U.S. healthcare system will remain unchanged in the meantime since Trump and Ryan didn’t clarify if they intend to float a new bill in the near future.