On November 8, the day after Democrats took control of both chambers of Congress, stock prices for the pharmaceutical and insurance sectors fell sharply. Analysts said the drop was caused by investor fears of lowered earnings as the Democratic Congress moves to negotiate prices for Medicare prescription drugs and for managing certain government insurance plans.
Rep Charles B. Rangel (D, NY), who is expected to become chair of the House Ways and Means Committee, said, “I think the administration is going out of its way to subsidize the private sector.”
Mitka M. Election Affects Markets. JAMA. 2006;296(22):2670. doi:10.1001/jama.296.22.2670-b