Bloomberg Law
Free Newsletter Sign Up
Bloomberg Law
Welcome
Go
Free Newsletter Sign Up

Clover at Risk on Rollback of Trump Medicare Program (Correct)

Feb. 18, 2022, 1:07 PM

A potential rollback of a Trump administration Medicare program could threaten a handful of recently listed stocks from the past two years including Clover Health Investments Corp.

Clover, which went public in a blank-check merger backed by Chamath Palihapitiya, has already seen its stock drop 90% from a June peak. But the stock could take another leg downward if a program known as direct contracting -- a payment model that allows private companies to take part in Medicare -- is ended or scaled back, as it accounts for roughly 60% of its sales, according to Citigroup.

Clover is one ...