Healthcare stocks, particularly those with exposure to privately managed Medicare Advantage plans, are in focus after President-elect Donald Trump's victory. Jefferies healthcare services equity research analyst Brian Tanquilut joins Seana Smith and Brad Smith on Morning Brief to discuss what healthcare investors expect from a second Trump term.

“There has been a lot of pressure over the last couple of years from the Biden administration, and these Medicare Advantage plans," Tanquilut says, adding, “The expectation is that because the Republican Party is very pro-Medicare Advantage, they'd rather have these private plans run the Medicare program away from the government-run program that we have right now through traditional Medicare, that the pressure on these plans will ease going forward.”

The analyst says, “I think the reactions that we're seeing today are about appropriate, given that expectation and the sentiment that we've seen in the group.” He says going forward, “one of the things that we're watching really closely are these health insurance exchange subsidies,” which Congress needs to act on when they expire at the end of 2025.

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This post was written by Naomi Buchanan.