Healthcare Stocks to Watch If Social Security Checks Get Bigger

Retirees could see bigger Social Security checks if policymakers adopt the R-CPI-E inflation measure, and that potential shift has put healthcare stocks under a brighter spotlight. Larger annual COLAs would give older consumers more room to spend on medical care, treatments, and related services, while also raising questions about long term government costs. This article looks at how that policy debate ties into a curated Healthcare Sector Stocks screener, and reveals 3 stocks that appear well placed to benefit if retiree spending power strengthens. It also aims to help you decide whether they deserve a closer look in your portfolio.

Arcutis Biotherapeutics (ARQT)

Overview: Arcutis Biotherapeutics is a US biopharmaceutical company focused on treating chronic skin conditions, led by its topical non steroidal cream ZORYVE for plaque psoriasis and atopic dermatitis, along with a foam version for seborrheic dermatitis and scalp and body psoriasis and an early stage immune modulator, ARQ-234.

Operations: Arcutis Biotherapeutics generates about US$415.6 million in revenue from the development and commercialization of treatments for dermatological diseases.

Market Cap: US$3.5b

Arcutis Biotherapeutics sits at the intersection of two factors: a large population dealing with chronic skin disease and the prospect of stronger retiree spending if Social Security benefits grow under R-CPI-E. ZORYVE targets conditions that affect tens of millions of patients and already has FDA approvals across pediatric and adult psoriasis, with filings under review for even younger atopic dermatitis patients. Recent results show rising product revenue and a shrinking loss, but investors still need to weigh funding risks given reliance on external borrowing and the fact that the company is not yet profitable. For readers tracking healthcare stocks that could be sensitive to bigger retiree healthcare budgets, this is a story that may warrant closer attention beyond the headlines.

Arcutis Biotherapeutics looks like a story where growing product revenue and a shrinking loss could be masking a bigger inflection point, and the analysis report for Arcutis Biotherapeutics might be where the real funding twist shows up.

InnovAge Holding (INNV)

Overview: InnovAge Holding runs Program of All-Inclusive Care for the Elderly (PACE) centers that coordinate medical, in home, and social services so frail seniors can stay in their homes rather than move into nursing facilities, combining primary care, therapies, transportation, and care management across several US states.

Operations: InnovAge Holding generates about US$948.7 million from its PACE segment and roughly US$0.5 million from other services, all from participants in the United States.

Market Cap: US$1.6b

InnovAge Holding provides exposure to an aging US population and government backed healthcare funding, at the same time policy shifts like R-CPI-E could leave retirees with more income for care that keeps them independent. The stock trades at a discount to some valuation estimates, while guidance points to revenue of US$950 million to US$975 million in fiscal 2026. The company is still reporting losses and carrying higher costs from expansion and compliance. For investors willing to weigh regulatory risk, rising medical expenses, and index exclusion against potential PACE expansion and the possibility of future profitability, InnovAge is a complex senior care story that may warrant closer evaluation beyond headline earnings.

InnovAge Holding’s PACE model sits between government funding and potential future profitability, and the full story may not be obvious from the headline numbers alone. It is therefore worth reading the analysis report for InnovAge Holding

Insmed (INSM)

Overview: Insmed is a biopharmaceutical company that develops and sells treatments for serious and rare diseases, including lung infections and respiratory conditions, with an approved product, ARIKAYCE, and a pipeline spanning late stage trials across bronchiectasis, pulmonary hypertension, and other hard to treat disorders.

Operations: Insmed generates about US$819.6 million in revenue from therapies for patients with rare diseases, with roughly US$658.7 million from the United States and US$160.8 million from international markets.

Market Cap: US$23.5b

Insmed stands out in the Healthcare Sector Stocks screener because it already has commercial revenue from ARIKAYCE while pushing a broad late stage pipeline aimed at conditions that often affect older patients. This is occurring at a time when potential R-CPI-E adoption could give retirees more room to pay for advanced therapies. At the same time, the company is still loss making, carries higher risk funding through external borrowing, and trades on an expensive P/S multiple versus biotech peers. As a result, execution on future launches, especially brensocatib and TPIP, matters a lot. Recent positive 12 month TPIP data and ongoing work to support respiratory launches illustrate why some analysts see substantial upside, but investors also need to think carefully about regulatory timing, payer decisions, and how long losses may continue.

Insmed’s late stage pipeline and current ARIKAYCE revenue may only be half the story, and the analyst forecasts for Insmed hints at how future launches could reshape the risk reward trade off in a way many investors are missing

The 3 healthcare stocks in this article are just a starting point, and the full Healthcare Sector Stocks screener surfaced 17 more companies with equally compelling narratives that could fit different risk and return preferences. Use Simply Wall St to identify, analyze, and filter for the exact catalysts and company stories that matter most to you so you can focus on the highest conviction ideas in this healthcare theme.

Take Control of Your Investment Journey

If Arcutis Biotherapeutics or any of these companies sound like a great opportunity, register for FREE with Simply Wall St and add your companies to a Watchlist to monitor the share price against the fair value the ideal entry point. Once you've made your move, manage your holdings with our Portfolio Command Center that filters out the noise to deliver only the most critical, actionable updates. Throughout your journey, our Community allows you to filter the best ideas from thousands of investor perspectives. By uncovering hidden catalysts and risks early, you'll accelerate your decision-making and stay one step ahead of the market.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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