The report that disappointed and the fear of Trump: what brings down the healthcare stocks in the US?

At the same time, yesterday, Trump announced that he is expected to freeze the payment updates received by insurance companies that provide services under the Medicare Advantage government insurance. Alongside United Health, other major insurance stocks, such as humane , Allowance , Hundreds and CVS Health Record sharp declines in trading on Wall Street.

In recent months, the winds surrounding Trump’s stated intention to pressure drug companies to lower drug prices have calmed down a bit, and the pharma market has recovered. However, it seems that Trump is nevertheless determined to collect this price from someone, and the insurance companies are next in the value chain. They are also very unpopular in the US today, perhaps even more so than the pharmaceutical companies, which could make them a relatively easy target to attack – whether merely stated or real – for Trump.

As you may recall, at the end of 2024, the CEO of United HealthCare, the insurance arm of the United Group, was shot dead by an assassin. Alongside the grief and fear, the networks were filled with criticism of the company, and reactions from people who claimed that they understood the killer’s motives, even if they disagreed with his actions (read more about United’s rise to the top and the global response to the criticism in an exclusive interview with the company’s founder Richard Burke).

Against the backdrop of concerns about stricter regulation in the field, United’s stock has already recorded a 47% decline in its share price in the past year, including today’s declines. The company is traded at a value of 257 billion dollars.

About 10 million Americans could lose their health insurance in the coming years

United’s revenue for 2025 was $447.6 billion, an increase of 12% compared to 2024. United now expects to register revenue of $439 billion in 2026 – that is, a decrease of about 2% in revenue. The analysts expected that the company’s revenues would grow to 464 billion dollars in 2026. If the company’s revenues did fall, it would be the first time in 30 years that such an event occurred. The company made sure all these years to grow both organically and through many acquisitions, which made it a body that dominates most of the value chain in the field of insurance and health services.

United claimed it was now aiming to right-size its business, which would now operate “with more discipline and precision”. Accordingly, it expects a profit of $17.75 per share, above analysts’ expectations, which stood at $17.61 on average.

As part of Trump’s One Big Beautiful Bill, about 10 million Americans could lose their health insurance in the coming years. This decrease affects both the insurance companies, and the pressure on the profits of the doctors’ clinics (some of which United also operates). According to its statement in today’s investor call, United is preparing for this by exiting less profitable areas, and streamlining the institutions that will remain open, in a way that will reduce revenues, but perhaps keep profitability the same, as the company predicts.

United explained that in recent years, greater regulation and increased competition in the field have made it difficult for it to achieve high profitability in the health services sector anyway.