Humana, Molina Jump As House GOP Revolt Reignites Fight To Extend Obamacare Subsidies — Retail Warns ‘Healthcare Wreck’

Health insurance stocks split after a House GOP revolt revived debate over ACA subsidies, while a year-end extension was ruled out.

• Four House Republicans reportedly broke with party leadership to advance a move that could force a vote on extending enhanced ACA subsidies.
• Senate leaders supposedly said no action will be taken before the year-end recess, leaving any decision until January, according to the Wall Street Journal.
• Stocktwits users flagged ‘bearish’ sentiment across several health insurers.

Health insurance stocks were split on Wednesday as fresh developments in Washington stirred uncertainty around the future of Obamacare subsidies.

Humana and Molina Healthcare traded higher during the session, while shares of UnitedHealth Group, CVS Health, Centene, Cigna and Elevance Health moved lower.

House Republicans Break Ranks

The stock moves followed action in the House, where four moderate Republicans joined Democrats to advance a discharge petition that could force a vote on extending enhanced ACA tax credits, according to a CNBC report. The subsidies were expanded during the pandemic and are set to expire at the end of December.

House Speaker Mike Johnson opposed the effort and earlier urged Republicans not to support it. Speaking on CNBC’s “Squawk Box,” Johnson said bypassing party leadership and the regular legislative process was not the best way to make law. His comments came after GOP leadership blocked attempts by moderate lawmakers to bring a vote on extending the subsidies.

Pennsylvania Rep. Brian Fitzpatrick, a Republican, was the first GOP lawmaker to sign the discharge petition on Wednesday. Three more followed him, edging the effort near the majority it would need to force a vote, the report said. 

Separate GOP Healthcare Bill Moves Ahead

Republican leaders are planning to advance a bill that doesn’t extend the enhanced subsidies on its own. That bill, which would expand association health plans and provide funding for cost-sharing reductions, is expected to be voted on in the House on Wednesday.

Separately, house centrists have been considering options for a deal that would extend the subsidies and include policy changes, such as income restrictions. Those efforts so far have not advanced to a vote.

Senate Leaders Punt Any Fix Into 2026

With lawmakers preparing to leave Washington for the holidays, Senate leaders said there will be no last-minute action on extending the ACA subsidies. Senate Majority Leader John Thune said Congress will not be able to pass an extension before the end of the year, pushing any potential move into January, according to a report by the Wall Street Journal

“We’re not going to pass anything by the end of this week, but I do think there’s a potential pathway in January,” Thune said.

Lawmakers are expected to depart before the weekend and return on Jan. 5. While senators from both parties have continued discussions, participants have said it is unlikely that even a bipartisan framework will be finalized before the break.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment for UnitedHealth, Molina Healthcare and Humana was ‘bearish’, with message volume described as ‘normal’ for UNH, ‘low’ for MOH and ‘extremely high’ for HUM.

One user called the development a “HEALTHCARE WRECK”

Another user said, “RIP to all the middleman rip-off insurance companies.”

So far this year, UnitedHealth is down 32%, Molina Healthcare is down 44%, while Humana is up 6%.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<