Trump Just Took Aim at Health Insurance ‘Middlemen.’ What Does That Mean for UnitedHealth Stock?

Core Viewpoint - UnitedHealth (UNH) shares are under pressure following President Trump's announcement regarding the elimination of insurance brokers and corporate middlemen, which could lead to lower healthcare premiums but also impact the company's profitability negatively [1][3][4]. Group 1: Impact of Policy Changes - Trump's proposed healthcare plan is concerning for UnitedHealth as it relies on distribution networks that include brokers, and reducing their role may decrease administrative fees and pricing flexibility [3]. - The potential reduction in cost-sharing reduction (CSR) funding could lower premiums for consumers but may also cap insurer margins on exchange plans, leading to lower profitability for UnitedHealth and its peers in individual markets [4]. Group 2: Investment Outlook - Despite the policy challenges, Bernstein analysts maintain a positive outlook on UnitedHealth, viewing it as a "top pick" for 2026 due to its strong position for margin recovery and ongoing exit from unprofitable business segments [5]. - Bernstein projects that UnitedHealth shares could rally by 80% over the next three years, supported by a healthy dividend yield of 2.67% [6]. - Other Wall Street firms also recommend holding onto UNH shares through 2026, indicating a consensus on the stock's long-term potential despite current headwinds [7].