Health Care Stocks Face Medicare Advantage Hit

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Sen. Barack Obama (D. Ill.), with just a few words in Wednesday night's presidential debate, reconfirmed what he'd said in the second debate: If he is elected president, he will terminate subsidies for Medicare Advantage.

Replying to a question about potential cutbacks, the Democratic candidate said: "We spend $15 billion a year on subsidies to insurance companies ... under the Medicare plan. It doesn't help seniors get any better. It's not improving our health care system. It's just a giveaway."

This is not entirely a surprise, as it is well-known that this subsidy for Medicare Advantage is considered by the Democratic party to be an unnecessary expense burden on the American public; however, in today's economic climate and with pressure to reduce spending, it appears to be a priority item for Obama's potential administration. Could this be the end of Medicare Advantage? ...