Shares of DaVita jumped more than 6 percent Monday after the company announced a change for Medicaid patients seeking Affordable Car Act (ACA) coverage.
"[DaVita] will suspend support for applications to the American Kidney Fund for charitable premium assistance by patients enrolled in minimum essential Medicaid coverage who are seeking additional coverage on a 2017 ACA Plan," the Denver-based Kidney-care company said Monday.
The changes are effective immediately.
The company said the change would affect about 2,000 patients, or one percent of DaVita's patient population.
"While our analysis indicates that dialysis patients account for less than 2 percent of the overall medical costs in ACA Plans, we understand the financial pressures in the risk pool," Chairman and CEO Kent Thiry said in a statement. "We stand ready to work with all stakeholders to preserve the intent of the ACA within a sustainable rate and regulatory structure."
The company said the change would result in a reduction in its annualized operating income of up to $140 million before any offsets.
DaVita's stock is down more than 15 percent this year to date.