Cramer Remix: What "Medicare for All" would mean for UnitedHealth Group
More and more Democratic presidential hopefuls are adopting a single-payer health care stance, which could be devastating for any player in the health insurance business, CNBC's Jim Cramer said Monday.

Following the lead of Bernie Sanders, the independent Vermont senator who is one of the biggest mouthpieces advocating for "Medicare for All," about eight candidates in the Democratic Party's crowded field support the idea in some form, Cramer noted. People may not be willing to pay for policies offered by UnitedHealth Group , the largest player in the space, and other firms if they are eligible for Medicare, he said.

"So that's what's at stake here: 'Medicare for All' versus a problematic system that has allowed UNH, Anthem , Humana , and the now-acquired Cigna and Aetna to make fortunes," the "Mad Money" host said. "Those stocks have all been terrific performers since Obamacare went into law."

While there are some good reasons out there for a single-payer system, Wall Street knows it would hurt the current state of the industry, Cramer said. Still, there is not unified support for the program among centrist Democrats as there is in the left-wing faction.

But health care companies are growing more defensive as "Medicare for All" has become more popular among some voters. Health care investors worry that a wave election could give the White House to one of the more left-wing Democratic candidates, and that the party would win majorities in both the House and the Senate.

Cramer pointed out how UnitedHealth Group's stock tumbled from $246 to nearly $208 after Sanders, who is vying for the Democratic nomination to take on President Donald Trump in 2020, laid out his universal health-care plan earlier this month.

The worst-case scenario for UnitedHealth, Cramer said, is that the stock could collapse to $145.

The stock has since mustered back above $237 since reporting a profit beat in the first quarter and raising its 2019 earnings forecast nearly two weeks ago.

"Honestly, if UNH pulls back to post-earnings low, though, around $208, you know what, I'd say start buying. And then 10 percent below, I bet it bottoms. I think that's gonna turn out to be a fantastic investment," Cramer said. "Unless you believe Elizabeth Warren or Bernie Sanders will win the nomination and then take the White House ... I'm betting the managed care stocks will end up doing just fine."

"I say stop the panic. These stocks may be closer to a bottom than Wall Street thinks."

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