Health insurers, hospitals rise on lower policy-risk outlook

** Shares of health insurers Molina Healthcare MOH.N jump 6.4% to $221.14 and Centene CNC.N rise 4.5% to $70.50 premarket

** TD Cowen says hospitals and Medicaid-focused insurers face less policy risk than most healthcare companies following the Democratic sweep of Congress

** Shares of hospital operators HCA Healthcare HCA.N climb 3.8% to $480.2 and Universal Health Services UHS.N gain 2.2% to $181.01 premarket

** Brokerage expects affordability and industry accountability to dominate the healthcare agenda, creating high "headline risk" across much of the sector

** Says sweeping reforms remain unlikely with President Donald Trump in the White House, but Democrats could use debt-ceiling negotiations to push for restoring Obamacare subsidies and reversing Medicaid payment cuts

** Citi expects greater scrutiny of drug pricing and federal health agencies, but sees limited near-term impact on drugmakers and expects existing pricing agreements with the Trump administration to remain intact