What does health reform mean for the health care industry? Evidence from the massachusetts special senate election

Mohamad M. Al-Ississ, Nolan H. Miller

Research output: Contribution to journalArticlepeer-review

Abstract

We exploit the surprise election of Republican Scott Brown to the US Senate to evaluate the market's assessment of the impact of the recent US health reform legislation on the health care industry. We find that Brown's election was associated with abnormal returns of 2.1 percent and 6 percent for investments in the health care sector overall and managed care firms, respectively. Investments in the pharmaceutical sector experienced abnormal returns of 2.8 percent, while health care facilities (e.g., hospitals) experienced abnormal losses of 3.5 percent. Firms involved with Medicare Advantage benefitted more, while those involved with Medicaid Managed Care benefitted less from the election.

Original languageEnglish (US)
Pages (from-to)1-29
Number of pages29
JournalAmerican Economic Journal: Economic Policy
Volume5
Issue number3
DOIs
StatePublished - 2013

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)

Fingerprint Dive into the research topics of 'What does health reform mean for the health care industry? Evidence from the massachusetts special senate election'. Together they form a unique fingerprint.

Cite this