BUZZ - Health insurance companies and hospital stocks rise, boosted by improved outlook for policy risk

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November 4 - ** Health insurance company Molina Healthcare (MOH.N) saw its share price rise by 7.5% to $223.36; Centene (CNC.N) shares rose 8.9% to $73.52

** According to TD Cowen, following a Democratic sweep in Congress, hospitals and insurers focused on Medicaid face lower policy risks than most other healthcare companies

** "The Democrats’ stronger-than-expected majority increases the chances for new policies that could restore coverage for some who lost it; this is beneficial for CNC and MOH," said Cantor Fitzgerald Securities

** Hospital operators HCA Healthcare (HCA.N) had their shares rise 10.4% to $510.79; Universal Health Services (UHS.N) rose 9.9% to $194.85; Tenet Healthcare (THC.N ) rose 8.8% to $290.35

** The brokerage expects affordability and industry accountability will become central to the healthcare agenda, resulting in heightened “headline risk” across much of the sector

** The report states that a sweeping overhaul is still unlikely during President Donald Trump's administration, but Democrats may use debt ceiling negotiations to push for a restoration of “Obamacare” subsidies and reverse cuts to Medicaid payments

** Citi expects drug pricing and federal health agencies will face stricter scrutiny, but believes the short-term impact on pharmaceutical companies will be limited, and that existing pricing agreements set by the Trump administration are expected to remain unchanged

(To facilitate non-English speakers, Reuters has automatically translated its reports into several other languages. As automated translation may contain errors or lack needed context, Reuters does not guarantee the accuracy of automated translations and provides them only for readers’ convenience. Reuters accepts no responsibility for any damage or loss arising from use of this automated translation feature.)