Stocks historically rise after mid-term elections, and yesterday was no different. The major indices closed at record highs, and with the S&P 500 surging an average of 16% following mid-term elections since 1950, more gains could be ahead as well.

Any Changes?

The GOP will no doubt take a hard look at health care related issues now that they are the majority in both houses of Congress. Republicans have been actively opposing the implementation of cuts to medical payment insurers such as Humana ( HUM ), and lawmakers could be looking to restore some of those parts in the programs.

Medical hardware companies can see reductions in tax rates will allow them focus on growing their business such as Boston Scientific ( BSX ) and Stryker ( SYK ). Restructuring the Affordable Care Act will also be one of the leading topics on the Republicans Agenda and companies such as Johnson & Johnson ( JNJ ) could benefit in a significant way.

Let's take a closer look at some of these companies and their prospects following this electoral shift:

Humana ( HUM )

Humana, Inc. is a health services company that facilitates the delivery of health care services through networks of providers to its medical members. The company's products are marketed primarily through health maintenance organizations and preferred provider organizations that encourage or require the use of contracted providers.

The company also offers various specialty products to employers, including dental, group life and workers' compensation, and administrative services to those who self-insure their employee health plans. The stock has been very volatile this week during mid-term elections and is currently trading up about .53% on Thursday at $139.92 per share.

Some analysts predict that Humana will be the highest correlate company in terms of benefiting from direct measures the GOP enacts in the near future. Humana is the second-largest insurance company that handles Medicare Advantage, right after UnitedHealth Group, and this area could be a target by the GOP.

Humana contracts with the Centers for Medicare and Medicaid Services in a program called Medicare Advantage. Often called Medicare's HMOs, Advantage is an optional program in which the federal government pays private insurance companies a set rate to treat Medicare beneficiaries. The program was conceived as a cost-containment measure on the theory that competition among private plans would drive down costs.

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2 Health Care Stocks to Watch on GOP Congressional Takeover - Stocks in the News