Donald Trump boasts of 'plunging' health insurance stocks following executive order on Obamacare

Cutting subsidies leads to rising premiums for lower-income families, analysts warn

Donald Trump has launched a new defence of his executive order on Obamacare, saying he was "very proud" of the move and that health insurance stocks had "plunged" as a result.

The order, which removes subsidies for insurance companies, has been criticised for stranding millions of poorer families without access to healthcare. Nearly 20 million extra people were able to access medical services after the Affordable Care Act was passed.

But Mr Trump argued the Obama-era system was collapsing and in recent days repeatedly attacked health insurers.

“That money is a subsidy for insurance companies”, he said, adding that he did not “want to make the insurance companies rich".

Shares in health insurers and other medical-related stocks dipped sharply on Friday as investors reacted to the order's announcement.

Centene, which has a large Medicaid business, dropped nearly 6 per cent, while Molina Healthcare was down more than 4 per cent and Athem fell nearly 3 per cent. Stocks in hospitals and drug distributors also dipped.

Some analysts predicted that cutting federal subsidies to health insurers would push up premiums, since insurers would have less incentive to participate in schemes supporting lower-income people.

Mr Trump said in a Twitter post on Saturday: "Health Insurance stocks, which have gone through the roof during the Obamacare years, plunged yesterday after I ended their Dems windfall!"

Minutes later he added: "Very proud of my executive Order which will allow greatly expanded access and far lower costs for healthcare. Millions of people benefit!"

Mr Trump has called for Democrats to discuss a deal with him, saying: “There's going to be time to negotiate health care that's going to be good for everybody."

But Mr Trump faces stiff opposition to his executive order. Doctors have condemned the move and nearly 20 states have filed a lawsuit against the President in light of the decision.