In its first-quarter earnings press release, Humana narrowed its 2019 non-GAAP EPS guidance due to the better-than-expected performance of its Retail segment.
Volanesorsen Ionis Pharmaceuticals’s (IONS) volanesorsen is a drug designed to reduce apolipoprotein C-III production and triglycerides in patients with dyslipidemia. Akcea Therapeutics, a wholly owned subsidiary of Ionis, is engaged in pre-commercialization activities for volanesorsen, and will take care of the drug’s commercialization once it is approved by the FDA and the European Commission. The […]
In 1Q17, WellCare Health Plans’ (WCG) Medicare Health Plans business reported revenues close to $1.1 billion, which represents year-over-year growth of ~12.4%.
On April 28, 2017, WellCare Health Plans (WCG) completed the acquisition of Universal American Corp. This deal added 119,000 Medicare Advantage members from several major markets
The effects of repealing Obamacare Donald Trump is definitely not in favor of the Affordable Care Act, known as Obamacare. As he wants to repeal the act completely and replace it with another policy, the hospital sector fell on November 9, the day after the election. Trump believes that providing healthcare facilities to illegal immigrants costs […]
If the Talen deal closes as advertised, you will make about $0.15. If the deal breaks, you will lose $1.85 per share. So, the risk-reward ratio is just over 12:1.
Given Talen’s close proximity to the Marcellus Shale region, it faces competition from other electricity generating companies that use cheap natural gas.
ITC (ITC) was trading at ~$33 per share before the press reported it was in talks for a sale. If the deal breaks, will ITC’s share price return to its former level?
Fortis (FRTSF) is buying ITC (ITC) in the largest Canadian purchase of a US utility. Fortis intends to sell a 19% stake in order to help finance the transaction.
On February 9, 2016, Fortis and ITC announced a merger. Fortis is buying ITC in a $6.6 billion deal. Including debt, the deal’s value is $11.2 billion.
To ensure high-profit margins through 2017, Centene plans to enter new markets across its Medicaid, long-term care, and correctional health businesses.
Anthem plans to negotiate pharmaceutical pricing with Express Scripts in an effort to improve affordability, secure more members, and enroll new customers.
Centene has reported net revenue of $5,821 million in 3Q15, an increase of 5.7% compared to $5,506 million in 2Q15. Operating revenue increased 5.8% in 3Q15.
In 3Q15, UnitedHealth Group’s consolidated medical care ratio, which is the ratio of medical costs to the premium revenue, fell by 0.9% on a year-over-year (or YoY) basis.
To strengthen their presence in international markets, health insurance companies have been involved in mergers and acquisitions with local insurance companies in these markets.
In 3Q15, UnitedHealth Group’s (UNH) UnitedHealthcare segment added 1.7 million people year-over-year across the commercial, Medicare, and Medicaid benefits markets in the US.
Aetna’s EBITDA margins rose from 10.6% in 1Q14 to 11.3% in 1Q15. Enrollment growth and an effective cost optimization strategy led to the high margins.
With a market cap of $27 billion, Humana is one of the leading companies in the healthcare service subgroup. HUM stock rose 4.34% for the period August 25–31, 2015.
In the case of the Cigna–Anthem merger, Anthem (ANTM) is buying Cigna (CI) for a headline amount of $188 a share, comprised of 0.5152 shares of Anthem and $103.40 in cash.
Centene projects that Health Net’s acquisition will help Centene realize pre-tax synergies worth $150 million by the end of the second year after the closure of the deal.
On July 2, Centene announced the acquisition of Health Net for a combination of cash and shares amounting to $6.8 billion. This includes the assumption of Health Net’s $500 million debt.
The merger of Anthem and Cigna is all about extracting synergies and driving down costs. As the Affordable Care Act puts pressure on health insurers, they need to cut costs to maintain margins.
Should the markets be happy about a later-than-expected rate hike? Or should they be worried that the FOMC’s optimism may spell the end of their golden run?
Cigna’s revenue is estimated to be $9.3 billion, and its EBITDA margin is expected to be ~9.0%. Its net income is expected to be around $480.6 million.
The rise in Aetna’s EPS is mainly attributed to the increase in the company’s government-sponsored MA (Medicare Advantage) and Medicaid enrollments in 1Q15.
For health insurance companies, the medical care ratio is the ratio of total money spent on healthcare claims to premiums earned—adjusted for tax and regulatory expenses.
In 2014, Centene entered into a contract with Arkansas to participate in a hybrid Medicaid program. The program is expected to expire in December 2015.
In 2014, of Anthem’s three business segments, Commercial and Specialty accounted for 53.7% of total revenues, and Government Business contributed 46.3%.
Anthem’s membership is mainly concentrated in the local group, total national, and Medicaid population. The local group accounts for about 40.4% of members.
Anthem provides health benefits and services to about 69 million people through its affiliated companies. It came 38th in the 2014 Fortune 500 rankings.
Customer segments The players in the private health insurance industry (IYH) aim for a favorable enrollment mix to reduce taxes and other liabilities while at the same time generating sustainable profits. Accordingly, managed care organizations such as Humana (HUM), Aetna (AET), Anthem, Cigna (CI), and WellCare Health Plans (WCG) are increasingly focusing on government-sponsored and international enrollments to balance […]
Managed care organizations (XLV) enter into a contract with a set of health care providers, or a provider network, to provide care for members at reduced costs.
Aetna (AET) derives 58% of its operating revenues from its commercial business, which involves offerings such as fully insured health plans and self-insured health plans.
Aetna’s membership is mainly concentrated in the western US, followed by the Southeast, the Northeast, the Mid-US, and finally consolidated international enrollments.
UnitedHealth Group (UNH) is a health insurance provider. It faces a unique combination of business risks, including business mix and competition risks.
UnitedHealth Group’s OptumRx segment provides PBM services to more than 30 million Americans. It manages about $40 billion in pharmaceutical spending annually.
The private health insurance industry in the US has been expanding its footprint in international markets. International markets are less penetrated and competitive.
With a market capitalization of $107.1 billion, UnitedHealth Group is the largest insurance provider in the US. It registered revenue worth $130.5 billion in 2014.
