Health Insurers Face Tough Second Half as Policy Risks Loom

Managed-care investors hoping for a sustained rebound after the sector’s worst first-half performance in a nearly a decade are probably going to have to wait a bit longer.

Last week’s face-off among candidates in the Democratic presidential primary have set the tone for a health-care debate that’s only expected to heat up throughout the year, weighing on insurer stocks. What’s more, an appeals court decision on the Affordable Care Act later this year promises even more volatility for a sector that’s seen nothing but steady earnings growth over years.