The largest health insurance companies saw mixed movements Wednesday morning following Donald Trump's surprising win of the presidency thanks to promises that the Affordable Care Act will be repealed and that the government will be less involved in business.
"[We predicted that] if you get a Trump sweep it would be a big positive for the space," analyst Nadia Lovell of JPMorgan said by phone Wednesday. "Trump has been very vocal about repealing ACA. People are concerned about what it means for the space."
Analysts noted that thanks to a Republican House, Senate and presidency, President Barack Obama's signature legislation, the Affordable Care Act, will likely be repealed in full or at least in part.
"Trump win, coupled with GOP majorities in Congress, opens the door to the ACA's repeal," Jefferies analyst Brian Tanquilut wrote in a note.
Ana Gupte, analyst at Leerink agreed.
"We expect that at least a partial 'Repeal and Replace' of ObamaCare is legislatively possible, particularly on key provisions related to the individual markets such as subsidies and the individual mandate," she wrote in a note.
And the politicians that won races are backing up predictions. Sen. Rand Paul (R-Ky.) said Wednesday morning that Congress would "spend the first month passing the repeal of Obama regulations" on MSNBC. Meanwhile Speaker of the House Paul Ryan promised to stand with Trump Wednesday morning.