Washington handed healthcare investors a fresh catalyst on November 3. Democrats’ sweep of the House and Senate revived expectations of relief for government-funded health programs, putting health insurance stocks and hospital stocks firmly in the spotlight. Reuters reported that Centene rose more than 8% in early trading on November 4, Molina Healthcare gained approximately 6%, and hospital operators HCA Healthcare, Tenet Healthcare, and Universal Health Services advanced between 6% and 8%. Investors were pricing in the possibility of a friendlier funding outlook.
The stakes extend well beyond one trading session. U.S. healthcare spending reached $5.3 trillion in 2024, equivalent to $15,474 per person and 18% of the economy, according to the Centers for Medicare & Medicaid Services. Hospitals alone accounted for roughly $1.6 trillion. That scale helps explain why changes in federal healthcare policy can quickly reshape expectations for revenue, earnings growth, and stock valuations.
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Why Medicaid and ACA Subsidies Matter for Healthcare Investors
Medicaid has been part of the American healthcare system since 1965, when it became law alongside Medicare. Jointly financed by federal and state governments, it illustrates how closely healthcare businesses are connected to public funding decisions. Following the election, investors focused on potential delays to Medicaid restrictions under President Donald Trump’s 2025 tax and spending legislation, alongside renewed prospects for enhanced Affordable Care Act subsidies. Those subsidies expired at the beginning of 2026, contributing to higher premiums and falling enrollment, Reuters reported.
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Finding the Best Healthcare and Insurance Stocks Beyond the Rally
A congressional victory still leaves a considerable distance between campaign promises and enacted policy. JPMorgan analysts cautioned that Trump’s veto authority could constrain major changes. For investors assessing healthcare stocks to buy after the 2026 midterm elections, the rally provides a starting point. Sustainable returns will depend on company earnings, medical costs, balance-sheet strength, and the price paid for future growth.
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Against that backdrop, this article examines ten healthcare and insurance stocks, weighing their operating performance, financial strengths, and company-specific risks as Washington’s shifting priorities reshape the investment outlook.
Our Methodology
To identify the 10 Healthcare and Insurance Stocks to Buy as Democrats Take Control, this analysis screened healthcare and insurance companies in Bio Tech Health X’s database and selected the ten with the highest hedge fund ownership. The stocks are ranked in ascending order by the number of hedge funds holding positions in each company, with the most widely held stock taking the top spot.
10 Healthcare and Insurance Stocks to Buy as Democrats Take Control
10. AbbVie Inc. (NYSE:ABBV)
Number of Hedge Fund Holders: 88
Supplied Share-Price Snapshot: $290.86, down 1.03%
Skyrizi and Rinvoq Keep the Post-Humira Transition Moving
AbbVie Inc. (NYSE: ABBV) is making progress on a challenge that has unsettled many established pharmaceutical companies: replacing a blockbuster medicine before competition overwhelms the rest of the business. Humira continues to lose sales to biosimilars, but the drugmaker’s third-quarter 2026 results showed that its newer immunology treatments are doing much of the heavy lifting. For investors researching healthcare stocks, that transition offers a concrete earnings story alongside the debate over federal healthcare spending.
Quarterly revenue increased 10.3% year over year to $17.404 billion, supported by 16.3% growth in immunology. Skyrizi produced $5.776 billion in global net revenue, while Rinvoq contributed $2.706 billion. Together, those two medicines generated approximately $8.48 billion, compared with Humira’s $683 million after a 31.2% decline. The figures illustrate how substantially the company’s commercial center of gravity has shifted toward its newer products.
The drugmaker also completed its acquisition of Apogee Therapeutics in September, adding clinical-stage assets intended to deepen its immunology pipeline. However, growth remains uneven across the portfolio. Oncology revenue increased just 0.8%, while aesthetics sales declined 1.4% on a reported basis. Sustaining earnings growth will require continued execution from Skyrizi and Rinvoq, successful pipeline development, and stronger contributions from other therapeutic areas. The company has demonstrated an ability to absorb Humira’s decline; broadening its next phase of growth remains the task ahead.
Ranking Rationale
AbbVie Inc. (NYSE: ABBV) takes tenth place with 88 hedge fund holders, the lowest count among the ten selected companies. Its operating appeal rests on an increasingly established replacement for Humira revenue, while dependence on two major growth products remains a central consideration.
