Health insurers/hospitals rally on light at end of COVID-19 tunnel

Health insurers and managed care providers are adding to the broad market rally as European leaders mull steps to open their economies back up, starting with the cessation of quarantines, as the rate of new COVID-19 cases wanes across the continent.

Spain just reported the fewest new cases since March 20 and infections in Germany have dropped for the fifth straight day.

Denmark is set to reopen day care centers and primary schools.

At yesterday’s briefing from the Coronavirus Task Force in Washington, DC, President Trump said the government is close to completing guidelines to re-open the U.S. “hopefully ahead of schedule.” May 1 appears to be the target date.

Removal of quarantines should release pent-up demand for clinic visits, new prescriptions and elective surgical procedures.

Selected tickers: CVS Health (CVS +2.3%), eHealth (EHTH +6.0%), WellCare Health Plans (WCG), UnitedHealth Group (UNH +2.9%), Molina Healthcare (MOH +3.7%), Humana (HUM +3.2%), Cigna (CI +2.8%), Centene (CNC +2.3%), Anthem (ANTM +3.8%).

Hospital operators enjoying increased buying: Universal Health Services (UHS +2.9%), SunLink Health Systems (SSY +5.3%), Tenet Healthcare (THC +2.8%), Community Health Systems (CYH +13.4%), HCA Healthcare (HCA +4.6%).

https://seekingalpha.com/news/3560544-health-insurers-hospitals-rally-on-light-end-of-covidminus-19-tunnel