Clover Health Stock May Rise As Millions Could Lose Health Coverage
You may know it as Obamacare, but the actual name of the federal U.S. healthcare program is the Affordable Care Act. This provides qualifying Americans with government subsidies for health insurance plans.
Meanwhile, Clover Health seeks to provide Americans with affordable health insurance. To achieve this, the company deploys its proprietary Clover Assistant platform. In particular, the Clover Assistant provides physicians with data to drive improved clinical decision-making and outcomes.
Insure-tech should be a high-conviction market sector, but Wall Street hasn’t favored CLOV stock lately. There was a quick pump to around $29 during the summer, but that didn’t last long.
More recently, the Clover share price has hovered near $3. Clearly, the company’s investors could use a shot in the arm. Just maybe, a government-level development could get the ball rolling.
As The Washington Examiner reports, later in 2022, enhanced subsidies for Affordable Care Act benefit recipients could expire if Congress fails to extend/renew those subsidies.
Moreover, if the subsidies expire, it has been estimated that 3.1 million Americans will no longer have healthcare coverage. Renewing the subsidies won’t be easy. After all, Congress is divided between Democrats and Republicans, who often have opposing views on the Affordable Care Act.
If you feel that Congress won’t likely renew these subsidies, this could signal an opportunity to buy CLOV stock. As Clover Health works diligently to get affordable healthcare coverage to as many Americans as possible, the company’s services may be in higher demand later this year.
This is a prime example of how private enterprise can step up when political leaders can’t agree. Clover Health’s shareholders haven’t had much good news lately, and division among America’s leaders might be disheartening.
Yet, at least there’s an opportunity for Clover Health to make a positive difference, and for CLOV stock to finally stage a turnaround.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
David Moadel has provided compelling content -and crossed the occasional line -on behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.
