Health-care companies were rose sharply after the Trump administration's planned requirements to force more price disclosures were not as onerous as investors had feared.
For the first time, hospitals and insurers would be forced to disclose their secret negotiated rates under a far-reaching plan released Friday by the Trump administration, as reported earlier. Administration officials said the final rule will compel hospitals in 2021 to publicize the rates they negotiate with individual insurers for all services, including drugs, supplies, facility fees and care by doctors who work for the facility.
Shares of UnitedHealth Group, the largest health insurer by enrollees, rose by as much as 4% earlier, with rivals such as Cigna and Anthem also gaining ground. Hospital chain HCA also gained sharply.
Roche Holding agreed to buy Promedior for up to $1.39 billion to secure experimental drugs for diseases associated with severe scarring or fibrosis. Roche's purchase follows Merck's deal to buy another biotech startup Calporta Therapeutics, with both companies taking a gamble on biotech companies passed over by other major drugmakers that had secured options to buy them.
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