UnitedHealth Group’s stock may not be as sickly as it seems, at least that’s our read through on recent large insider purchases. CEO Wichman bought 20,000 shares at $231.79 spending $4.6 million while a Director purchased $1.5 million at $231.23.

Shares of the health insurance provider lost more than 12% in the days leading up to the large insider buys, losing roughly $35 billion in market cap. The weakness continued after UnitedHealth reported earnings, with the stock hitting a new 52-week low on comments made by the CEO about the Democratic Presidential candidates support of “Medicare for All.”

United Health beat earnings, raised 2019 earnings estimates and had excellent cost management but the earnings call and political noise spooked investors.  The back to back insider buys restored some confidence and have put a floor under the stock price, at least for now.  Without question, “Medicare for All”, would create an existential threat for United Healthcare as it would for all publicly traded health insurers.  Clearly, management doesn’t believe that will happen anytime soon.