This would be the worst-case scenario for health companies, according to UBS

Health-care reform is coming, UBS analysts say, and it could have severe consequences for certain health companies.

There are several possible scenarios for reform, analysts wrote in a 115-page report sent to clients Wednesday. But there’s one that would be particularly bad for health stocks.

“The true worst case for biotech and pharma stocks would include any outcome where the Trump administration manages to implement something that is closely based on its current IPI model,” analysts wrote, referring to a proposal that would tether what Medicare Part B pays for drugs to an international pricing index or benchmark. Medicare Part B covers drugs administered to patients in doctors’ offices and hospitals.

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