Republicans' big victories in Congress could compel a second look at parts of President Barack Obama's sweeping healthcare overhaul, but any changes will be subtle and a far cry from the blanket repeal vowed by party leaders.
Democrats' continued control of the Senate, albeit with a smaller majority, and Obama's presidential veto power leave the Republicans with only a weak hand in trying to push through aggressive changes.
"Regardless of Republican rhetoric ... last night's Congressional results won't yield changes in healthcare reform law," said Leerink Swann analyst John Sullivan.
Senate Majority Leader Harry Reid opened the door to possible "tweaks" of the healthcare overhaul -- the president's signature legislative achievement.
For now, health insurers, whose shares staged a modest rise on Wednesday, must adhere to the law passed earlier this year.
As results rolled in on election night, the expected new House Majority leader, Representative Eric Cantor, vowed to repeal the bill. The healthcare reform, which was passed in both the House and the Senate without a single Republican vote, imposes tough new standards on health insurance companies and requires all Americans to buy coverage starting in 2014.
But few experts saw any hope for a repeal with Democrats' continued grip on the Senate and no possible change in the White House until 2012.
House Republicans can still hold hearings and use their influence to help shape implementation of the many new regulations. It takes both houses of Congress to approve changes, and Obama, a Democrat, is likely to veto any legislation to weaken the overhaul.
Still, Reid on Wednesday signaled a willingness to take another look at certain parts of the law, though he offered no specifics.
"If there's some tweaking we need to do with the healthcare bill, I'm ready for some tweaking," Reid, who won re-election in a hard-fought contest in Nevada on Tuesday, told CNN.
At the same time, numerous states are challenging the reforms through various legal actions that could eventually reach the Supreme Court.
Health insurers, which include companies such as Humana Inc and WellPoint Inc, largely fought the overhaul, opposing a number of provisions such as new coverage practices and spending rules. But they see the mandate to buy insurance polices as a win that expands their customer base.
The chief executive of Aetna, Ron Williams, who is retiring later this month, said Wednesday his company is "very focused on working with regulators" and would have "to see what unfolds" with Congress.
Shares of health insurers were off slightly more than the broader market on Wednesday. The S&P Managed Health Care Index was down 1 percent in midmorning trading, while the S&P 500 index was near flat.
(source:reuters.com)
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