Trump Unveils Healthcare Plan Aiming for Up to 90% Drug Price Cuts
Written by Emily J. Thompson, Senior Investment Analyst
Source: NASDAQ.COM
- Healthcare Plan Overview: On January 15, 2026, Trump unveiled the 'Great Healthcare Plan' aimed at reshaping the U.S. healthcare system by reducing prescription drug prices, lowering insurance premiums, and increasing price transparency, with potential drug price reductions of 80% to 90% in certain cases.
- Pressure on Insurers: The plan redirects government healthcare spending to individuals rather than insurers, which could pressure profitability for companies like UnitedHealth Group and Centene, especially as market plan revenues become less predictable in 2026.
- Transparency Boost: The new plan mandates insurers and healthcare providers to disclose financial information and claims data to enhance industry transparency, which is expected to empower consumers to make more informed choices while potentially increasing compliance costs.
- Market Reactions: While the plan aims to lower healthcare costs and increase accountability, policy experts express concerns about implementation details, particularly regarding the impact on individuals with pre-existing conditions, which could lead to a 'death spiral' in the insurance market.
Analyst Views on CNC
Wall Street analysts forecast CNC stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for CNC is 43.07 USD with a low forecast of 32.00 USD and a high forecast of 59.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
5 Buy
8 Hold
2 Sell
Hold
Current: 47.270
Low
32.00
Averages
43.07
High
59.00
Current: 47.270
Low
32.00
Averages
43.07
High
59.00
About CNC
Centene Corporation is a healthcare company. The Company provides fully integrated services to government-sponsored and commercial healthcare programs, focusing on under-insured and uninsured individuals. Its segments include Medicaid, Medicare, Commercial and Other. Specifically, the Medicaid segment includes the Temporary Assistance for Needy Families (TANF) program, Medicaid Expansion programs, the Aged, Blind or Disabled (ABD) program, the Children's Health Insurance Program (CHIP), Long-Term Services and Supports (LTSS), Foster Care, Medicare-Medicaid Plans (MMP), which cover beneficiaries who are dually eligible for Medicaid and Medicare and other state-based programs. The Medicare segment includes Medicare Advantage, Medicare Supplement, Dual Eligible Special Needs Plans and Medicare Prescription Drug Plans. The Commercial segment includes the Health Insurance Marketplace product along with individual, small group, and large group commercial health insurance products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
