Healthcare stocks took a hit on the executive order signed by President Donald Trump June 24 related to price disclosure, according to Zacks Investment Research.
The executive order aims to lower healthcare costs by improving price transparency. It directs governmental agencies to set rules requiring disclosure of discounted rates hospitals and insurance companies negotiate for care. It also addresses transparency regarding patients' out-of-pocket costs for medical services.
Stocks of major health insurers UnitedHealth Group, Humana, Cigna and Anthem fell by 1.05 percent, 1.08 percent, 0.43 percent and 1.1 percent, respectively, on the executive order announcement, reported Zacks.
Stocks of major for-profit hospital operators also took a hit on the news. Franklin, Tenn.-based Community Health Systems and Dallas-based Tenet Healthcare saw shares fall 5.17 percent and 2.57 percent, respectively, according to Zacks.
The investment research firm reported that the Health Care Select Sector SPDR Fund overall dropped 0.52 percent in trading June 24.
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