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UnitedHealth fell 3 percent at 10:30 a.m. in New York. Its competitor Anthem was down 4.8 percent, and Cigna slid 3.1 percent.
The insurer, which covers almost 50 million people, said the proposals amount to a “wholesale disruption of American health care.”
Sanders's proposal would establish universal benefits through a government-run program and outlaw most forms of private insurance.
It's part of a shift in the health-care industry to address aspects of people's lives that influence their health beyond medical care.
A U.S. district judge has blocked new rules governing association health plans, which let businesses band together to create group health plans.
The acquisition expands in the market for government insurance plans just as politicians gear up for another health-policy clash.
Mount Sinai is the latest to partner with One Medical, allowing doctors to share information and tap into each others' electronic medical records.
The name was unveiled on Wednesday, along with a website, havenhealthcare.com, and a letter from CEO Atul Gawande.
Legislation proposed by Congressional Progressive Caucus co-chair Pramila Jayapal would steer all Americans into the Medicare program in two years.
The price-negotiation strategy encourages doctors and insurers to offer more moderate (and reasonable) rates for medical bills.