A sweeping piece of legislation, dubbed the “One Big Beautiful Bill,” is shaking U.S. markets as it inches closer to becoming law. Having cleared the Senate, the bill now faces a tight vote in the House — but it’s already sending shockwaves through major sectors, particularly healthcare and clean energy.
Stocks Plunge on Bill’s Looming Impact
Healthcare stocks led the rout on news of the bill’s near-passage. Major insurers and providers tied to government programs like Medicaid and Medicare saw eye-popping single-day losses:
- Centene Corp.: Down 40.4%
- Oscar Health: Down 18.7%
- Molina Healthcare: Down 22%
- Elevance Health: Down 11.5%
- UnitedHealth Group: Down 5.7%
- HCA Healthcare: Down 3%
The severity of the sell-off reflects investor fears about deep spending cuts to social programs that could dramatically reduce reimbursements and shrink the insured population, slashing revenues for health insurers and providers.
What’s in the Bill?
The legislation is built around several core pillars:
✅ Making Trump-era tax cuts permanent — Extending the 2017 tax cuts for individuals and businesses, delivering roughly $4.5 trillion in tax breaks over 10 years.
✅ Massive spending cuts — Targeting programs like Medicare and SNAP, tightening work requirements, and eligibility rules that could impact around 11 million Americans.
✅ Defense and immigration spending boost — Adding $150 billion for defense and $70 billion for border security.
✅ Rolling back clean energy incentives — Reducing or eliminating credits that have supported electric vehicle (EV) makers and renewable energy firms.
✅ Potentially adding $2.4 to $3.3 trillion to the national deficit over the next decade despite spending cuts, as lost tax revenue outpaces reductions.
Why Healthcare Is Reeling
The biggest blow is falling on health insurers and providers who rely on government-funded programs. By reducing Medicaid reimbursements and tightening SNAP and Medicaid eligibility, the bill could leave millions uninsured or underinsured, shrinking the customer base for firms like Centene and Molina Healthcare.
Discount grocers and pharmacies in low-income communities may also see sales decline as consumers lose benefits or face tighter qualifications.
Clean Energy and EV Sectors at Risk
The bill’s cuts to clean energy tax incentives are bad news for EV-only automakers like Tesla, which could see customers lose access to credits that make EVs more affordable. While Tesla shares were up slightly today on international sales news, the broader trend has been down: shares are off nearly 17% over the past six months, underscoring ongoing volatility.
The bill could also weigh on renewable energy developers, making projects less economically attractive without federal incentives.
Stocks Under the Microscope
A look at some key movers:
🔻 Centene (CNC): The hardest hit, plunging 40% in a day. Already struggling in recent years, this steep drop reflects fears about deep cuts to Medicaid funding.
🔻 Oscar Health (OSCR): Down nearly 19%, highlighting vulnerability among health insurers focusing on government-supported plans.
🔻 Molina Healthcare (MOH): Off 22% despite relatively solid long-term performance; Medicaid exposure leaves it exposed to bill’s provisions.
🔻 Elevance Health (ELV): Down 11.5%; while long-term performance was strong, momentum reversed sharply in late 2024.
🔻 Tesla (TSLA): Up nearly 5% today on positive delivery numbers abroad but down 7.9% in the past month and almost 17% in six months, facing both competition from Chinese EV makers and political threats to EV incentives.
What’s Next?
Investors are closely watching whether the bill clears the House. If it passes, its provisions would roll out over the next decade, reshaping key sectors from healthcare and social safety nets to clean energy and defense.
Stocks in healthcare, affordable housing, and clean energy could face prolonged pressure, while capital-intensive industries benefiting from tax cuts — like traditional manufacturing — could see a boost.
Bottom line:
The “One Big Beautiful Bill” is a political and economic earthquake with the potential to redefine winners and losers across U.S. markets for years to come. As investors brace for the outcome of the House vote, expect continued volatility in affected sectors — especially healthcare and clean energy.