Why eHealth Stock Surged 22% Today
Shares of eHealth (NASDAQ: EHTH) climbed by more than 20% on Wednesday, following the results of the Super Tuesday primary elections.
Many health insurance stocks saw their prices sink in recent weeks after Democratic presidential candidate Bernie Sanders emerged as a frontrunner in the primaries. Sanders wants to institute a "Medicare For All" program, which would provide everyone in the U.S. with comprehensive healthcare coverage. Sanders' policies could potentially wipe out a huge portion of private insurers' businesses, as well as those of health insurance exchanges, such as eHealth.
However, investors appeared to breathe a sigh of relief after former Vice President Joe Biden's strong performance on Super Tuesday. Biden now leads in delegates after winning in states such as Texas, Virginia, and Massachusetts. A Biden victory would be much less frightening for health insurance-related companies, as his policies are far less threatening to the industry.
Source Fool.com
