The Ripple Effect of Vice President Kamala Harris on Health Care Stocks

President Joe Biden’s announcement of his decision not to pursue re-election on Sunday stirred the waters of American politics. The endorsement of Vice President Kamala Harris overshadowed this revelation, thrusting her front and center. The limelight now falls on her stances on critical issues, particularly health care.

Despite not securing the Democratic Party nomination for president, the backing of numerous prominent legislators bodes well for Harris. It is her history of involvement in health care matters that has piqued the interest of many.

Notably, from her tenure as California Attorney General, Harris has been at the forefront of significant health care battles. A standout clash occurred in July 2016 when she aligned with 11 state attorneys general to challenge the proposed merger of Cigna International (NYSE:CI) and Anthem, now the entity Elevance Health (NYSE:ELV). The fallout of this lawsuit led to the dissolution of the merger.

In a preceding event, Harris raised concerns regarding Prime Healthcare’s acquisition of Daughters of Charity Health System, a safety-net system. Despite the deal going through, stringent conditions were imposed, reflecting Harris’s unwavering dedication to health care oversight.

Upon assuming office as a U.S. Senator in 2017, Harris fervently supported Sen. Bernie Sanders’ Medicare for All proposal, advocating for a single-payer, national health care system. However, her stance modulated in 2019 during her bid for the 2020 Democratic presidential ticket, envisioning a role for private health plans.

During her tenure as vice president, Harris witnessed the enactment of crucial legislation under President Biden’s administration, particularly regarding drug pricing. Notable policies include the implementation of a $35 monthly out-of-pocket cap on insulin for Medicare beneficiaries and the introduction of Medicare drug pricing negotiation measures.

Although the Inflation Reduction Act’s provisions pertain solely to Medicare enrollees, the three leading insulin manufacturers—Eli Lilly (NYSE:LLY), Novo Nordisk (NVO), and Sanofi (SNY)—have voluntarily offered select insulins at $35 per month despite insurance coverage.

Forthcoming Medicare pricing negotiations commencing in 2026 encompass various drugs, such as Bristol Myers Squibb (BMY) and Pfizer’s (PFE) Eliquis, Merck’s (NYSE:MRK) Januvia for anti-diabetic therapy, and AbbVie’s (ABBV) and Johnson & Johnson’s (JNJ) Imbruvica for blood cancer treatment.